224
3
So far from local defence and war expenses not aggregating
me than 2 million dollars per annum they have in fact aggregated al-
most 12 million in the last year, due chiefly to expenditure on A.R.P.
and food reserves. Two contributions of £100,000 each have been made
to H.M. Government bringing the total war expenditure to 15 million
dollars. I may add in passing that this Colony is further contribut--
ing £200,000 per annum for the period of the war from the profits of
its Exchange Fund, while almost a further £100,000 has been raised in
the past year by voluntary subscription through the War Fund inaugurat
ed by the South China Morning Post and Hong Kong Telegraph.
The excess of $5,300,000 on war expenses has had to be met
from ordinary revenue, and to increase that tobacco duties were raised
in September. The tax on cash sweeps has been doubled and postage
rates are about to be raised. The recent increase in railway charges
has not been to produce revenue but to offset the increased cost of
coal, and the aim of the further increase in the petrol duties was not
to produce more revenue, but, by reducing consumption particularly in
respect of private cars, to conscrve foreign exchange and save tanker-
With the assistance of this increased taxation it is hoped that
ordinary revenue, which has come in well all the year, will be suffi-
cient not only to meet increased ordinary expenditure but also the war
expenditure not covered by existing war taxation. I should like to
remark in passing that it is difficult strictly to demarcate ordinary
and war expenditure and that many items of expenditure in the printed
estimates of this year and the draft estimates for next year are eithor
due to or increased by the war.
age.
I now come to the resolution before Council "that the
draft estimates of cxpenditure for 1941-42 be approved". These
estimates amount in all to $62.399, inclusive of $12,300,274