3
circumstances, therefore, the Governor would like
the expert investigation on the possibility of
income tax in Hong Kong (which is the Committee's
main recommendation) to be conducted without too
much delay, and seeks approval in principle of the
appointment of an expert to conduct such an enquiry.
Mr Huxham of Ceylon will not now be
available, and Mr. Chambers (see 4) of the Indian
Inland Revenue Department would not be free at
least until December, 1940, and presumably the
Governor would not like to defer the investigation
for so long; furthermore, Mr. Caine suggests that
his services might prove a little too expensive for
Hong Kong. He might, however, be able to recommend
a suitable person to conduct the enquiry.
In Chapter 4 of their report the Committee
remark that strict attention to economy in
administration should precede any attempt to expand
revenue by means of additional taxation.
They
draw attention to the relatively high cost of
Government provided education, and also point out
how great are the Government's commitments with
regard to pensions. At present Hong Kong is
collecting the necessary documents and information
for an actuarial survey of their pension liabilities;
but it is perhaps worth mentioning that Sir H. Pollock
raised this question of pensions at a meeting of
the Legislative Council earlier this year, and
suggested that one way out of the difficulty would
be to raise the retiring age for Government servants.
I think it may perhaps be difficult to
find