108
Now that the Report of the War Revenue Committee has been em- bodied into the present proposal, I do not wish to take up any more time than to express my gratitude to my Unofficial colleagues and to members of the War Revenue Com- mittee for their labour and fruitful results. I heartily approve the prin- ciples on which this Bill is based.
the
As your Excellency observed, none harboured any selfish motive and all expressed the willingness to share the responsibility. The question is, therefore, only one of equity and of application, so that the tax may fall on the shoulders of those who are in a position to pay, provided its adoption will not deleteriously affect the future prosperity of the Colony.
I need hardly point out that while we should be mindful of the Colony's future, we should not overlook the fact that at this very moment, the integrity and indeed the very exist-i ence of the British Commonwealth is at stake.
Life and Death Struggle
On November 16 of last year, when your Excellency addressed the Council on the subject of war con- tribution, your Excellency referred more than once to the fact that Great Britain was being engaged in a life
and death struggle.
Since then, the truth of that statement has been repeatedly testified, by news reports of the enemy's ruthless tac- tics and gigantic preparations for the eventual death struggle. I fear that many people in this outpost of the British Empire, because of their re- moteness from the scene of conflict, do not appreciate the full significance and seriousness of this war. As we are aware, Germany has repeatedly avowed, according to Press reports. that her one aim is the total des-
of the British Empire truction which this Colony is a component part.
of
I feel very strongly that, as long as one nation claims to be superior. to all others and that that nation then only has the right to live, civilisation is endangered and there can be no peace in the world.
It is my fervent hope that all sec- tions of this Colony will unite in a and of firm resolution of purpose unswerving loyalty to our Cause- this the successful prosecution of wär.
Sir, I endorse the sentiments so ably conveyed, on behalf of the Chinese Community, by my Senior Chinese Colleague, the Hon. Mr. M. K. Lo, in support of the motion. (Applause).
The Bill was then read a second time, after which it was agreed to refer it to the Standing Law Com- mittee.
CONTRIBUTIONS APPROVED
Vessels for Navy And Army: Gift for H.M. Government
""That this Moving the resolution Council approves the expenditure within the current and next finan- cial years of $5,000,000 on the con- struction in Hongkong of vessels to be presented to the Admiralty and War Department as part of Colony's contribution to His Majesty's Government towards the prosecution of the war with Germany", the Fin- ancial Secretary said: As already ex- plained in connection with the War Revenue Ordinance the various taxes thereunder are expected to bring in
the
approximately $6,000,000 per annum; $2,000,000
from
Property Tax;
$1,000,000 from Salaries Tax and Corporation and from $3,000,000 Business Profits Taxes. The estim- a twenty-four ated revenue months period is, therefore, $12,000,- 000.
over
Coming to expenditure proposals, it may be more convenient if they are looked at over the longer period of twenty-four months, as the ship- which Govern- building programme
ment has in mind could not be com- pleted within twelve.
The three heads under which this special expenditure will fall are first, the cost of the temporary War Re- venue Department, secondly, the ab- normal recurrent expenditure impos- ed on the Colony by war conditions and, thirdly, the cost of ship build- The follow- ing for war purposes. ing schedule contains the estimated under the two former expenditure heads
twenty-four months period. Head
aver a
Expenditure
Two
Annual Rate year Basis
$
$
800,000
1. War Revenue Depart-
ment
2. Excess War Expen-
diture
(i) Volunteer Forces (ii) Censorship Depart-
400,000
ment
(iii) Internment
of
Enemy Aliens
Department
109,600
969,600 1,939,200
347,200 694,400
219,200
of
Information
35,200
70,400
Control
9,600
19,200
(iv)
(v) Shipping
Board
(vi) Food Control (vii) Miscellaneous
Given
76,000 152,000 24,000 48,000
1,971,200 3,942,400
a revenue of $12,000,000 there would remain a balance avail- able for the construction of ships to be presented to His Majesty's Gov- ernment of $8,057,600.
Ample Margin
At the moment, however, Govern- ment's intentions in that direction do not exceed $5,000,000, thus leaving an ample margin for faulty estima- tion, short collection or, it may be, further gifts in cash or kind. Those two mine- intentions are to build sweepers and four harbour defence craft for the Royal Navy and two ferry tenders for the Army. It will be appreciated that it is impossible at this stage to give further details as to individual cost: tenders will be called for as soon as possible.
Application will be made in Fin- ance Committee after this meeting to cover for a supplementary vote
I
the estimated expenditure which I have just described. The figures in the schedule which will be put be- fore the Committee will not corres- pond exactly with those which have given, however, as for the most part they will be on a fifteen months basis, which for the sake of greater intelligibility I have avoided in this statement.
Hon. Sir Henry Pollock: The Un- official Members of this Council un- animously support this motion.
Loan, 1934, to the extent of $11,- 140,000 has been temporarily charg- ed to Surplus Balances pending the second issue of bonds, while further loan works advances on additional have been similarly made against a Details of proposed future loan.
this expenditure are given in Appen- dix VI (b) and (c) of the printed estimates. But revenue figures con- tinue to be satisfactory and receipts so far this year have generally been in excess of the estimates. Apart from the revenue from the taxes proposed under the War Revenue Or- dinance the Colony is in a financial position to make an immediate cash gift to His Majesty's Government.
This item is included in the ap- plication for a Supplementary Vote which is to be made in Finance The Committee after this meeting. figure there given is $1,627,119 which is
the equivalent of £100,000 at 1/234 to the dollar, the rate of ex- change taken in connection with the estimates for 1940-41.
Hon. Sir Henry Pollock: The Un- official Members of this Council un- animously support this motion.
Chinese Grateful
Hon. Mr. M. K. Lo: The contribu- tion to
Government the British which is to be raised under the War Revenue Legislation relates to period from April 1, 1940, and the War has already gone on for over six months.
.
a
Although the appalling loss of life, which was such a ghastly charac-
of
has the Great War, teristic happily not yet taken place, Eng- land, throughout this period, has intolerable been experiencing the strain and anxiety of preparedness and suspense. Her Navy and Mer- chant Marine, Army and Air Force, have been carrying out their allotted and tasks in face of all dangers, with inevitable casualties, and the whole nation has been mobilised to fight the greatest military bully the world has ever seen.
In contrast to the prevailing -con- ditions in England Hongkong has in-
to be
for. deed much
thankful Thanks to the British Navy and the might of the British Empire, Hong- kong is enjoying a measure of peace of and freedom which is a thing
of the the past in so many parts world to-day.
as a
of the One of the racial traits
of Chinese is their abiding sense gratitude. I feel certain that, grate- fully appreciating the Colony haven of refuge in which they can live in security and peace, all Chin- ese in the Colony warmly approve of the cash contribution to the Im- perial Exchequer.
Lord Halifax's Views
or
In his speech at Leeds on Janu- ary 20, Lord Halifax reminded his! audience of the work of the Fight- ing Forces, and of the Mercantile Marine. "We know," he said, "the Royal Navy and indomitable Mer- cantile Marine are under the never- ending strain of sea-danger; the sol- dier on
raiding night patrol parties; or the airmen, facing all the forces of nature over sea and land to fight their way over enemy ter- Lord ritory on special missions."
"When we Halifax then went on: appreciate all this, how little it is that is in our power to do at home!" He said: The General revenue
And he concluded: "Therefore, let balance of the Colony on December
us give, and give freely, and let us 31, 1939, was approximately $16,865,-
all remember that our great cause if all are 000. As Honourable Members are
can only end in victory on loan works aware, expenditure
prepared to spend themselves in its authorised under the 32% Dollar
behalf."
The resolution was carried.
MONETARY CONTRIBUTION The Financial Secretary next mov- ed: That this Council approves the gift to His Majesty's Government of £100,000 as a monetary contribution of Hongkong to- from the Colony
of the war wards the prosecution with Germany.
To be continued.