I agree to the draft.
22
Broadly, I would accept the local proposals. They
have doubtless been worked out by Mr: Caine, who
has had long experience here, now knows the circum-
stances in the Colony, and is quite exceptionally
able and competent in a matter of this kind.
Income tax. I agree that we had better not say
anythings to possible permanence, one way or the
other. Income tax, once imposed, is almost invariably
found to be so useful as a revenue aid that it is
We can well afford here to
generally continued.in
wait on the event, I think. And the continuance
-and even more the extension--of social services
may not improbably prove to be a most important
element in the final decision, when the necessity for
taking that decision arrives.
The 7th: October, 1939.
You Ref. 12.
Jel. 341
9.10.39
Requests reply by
11.10.39
DESTROYED UNDER STATUTE
As Mr. Gent points out, the general policy
underlying these proposals depends on the Secretary of State's agreement to the Hong Kong Government's
proposal to devote a portion of the proceeds of the
war taxation Budget to a contribution to H.M.G. towards
the cost of the war.
I have already minuted on this proposal on
other papers which I have sent through Mr. Dave and
Sir John Shuckburgh and I do not know whether they have
vet