129
"Finally some form of Excess Profits Tax in Arrear migh be introduced. This would be directed against profits accumulated during the war, particularly by collaborators, but would also catch Excess Profits in the future."
Clause (c) We applaud the general sentiment but would prefer at present not to base ourselves on a comparison between taxation in Hong Kong and in the U.K. since conditions in the two countries are very different. We suggest the following amendment:-
"In the interests of the colony itself to check inflation, the general scale of taxation should be raised as high as possible, subject to local conditions.
2
As
It
Paragraph 7. We agree on the whole to this paragraph. regards (c) we are not sure how far Savings Bank departments of the local commercial banks meet the needs of these small investors. is not presumably the intention of the Goverment to set up Post Office Savings Banks in competition with the se institutions, and if effective savings machinery already exists arrangements could no doubt be made for the commercial banks to re-lend their funds to the Government.
The
Paragraph 10. We would like the reference to the possibility of a Treasury guarantee for any loans raised locally omitted. promise of such loans cannot be discussed until concrete proposals have been received from Hong Kong.
At the end of Paragraph 10 we would like the following addition.
"Please report when first return of receipts and expenditure (Treasury letter 22nd November 1945) expected".
Yours sincerely,
ik
H. J. D. Winnipich
لست