be reviewed as to possible increasing of rates, rates
and new sources of revenue should be explored
such as some form of excess profits tax which,
in addition to being directed against profits
accumulated during the war, would also catch
excess profits in the future.
of the Colony itself to check inflation/should
he interest
gmoral scale of taxation
be raised as high as possible subject to local
conditions.
3*
ງ
Will
that 1941 rates of tax
gethe
no doubt
You should also consider in what way the
needs of the small investors might be met by
encouraging the use of Savings Banks and
woul
possibly by use of Savings Certificates.
$27 million
4. The special expenditure included in the
estimates should be financed from loan funds
rather than from current revenue assisted by
loans from H.M.G. It is possible that total all mounts provided in the estimates will not be
A
spent in 1946-7 owing to shortage of supplies.
Consideration should therefore be given to
estimating the amount required for special
which should expenditure in the next few years and if it 15
to be included under a Loan Ordinance authorising
the raising of a loan locally or in London
of loan in Londen may be expected to be about 224
and provided local terms did not exceed sa7-3%-p there would be advantages in power being taken
to raise the loan locally as well as in London.
In the meantime the question of the possibility
The of advances being made from Joint Colonial Fund
Force
to bRico, liquer & berpol are still in full a in view of prural. Juices there
nse
scene, an
onurchining mima Jacie case for
in cuase.
as
Terms
tames
to finance special expenditure pending the raising
Consulting hunt appropriate authorities a Wondatites of
The Loan No lint Schm mefer a local wan If the terms are
of a loan, is being taken up with the Crown Agents nut flest appreciatly
for the Colonies.
5. In view of assistance required from H.M.G.
Treasury control over Hong Kong finances is in
force. The precise form of control has not yet
been
en favorable man
Thire Manath in
Lowon