SECRET
47
HONG KONG
54132
Revised Draft
7/7/44
CIVIL AFFAIRS POLICY DIRECTIVES
FINANCIAL POLICY
The general aim of financial policy will be to distribute
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the burden of taxation, required for the urposes of the community,
among the community according to its ability to pay. In general,
the pre-occupation financial system should be revived except as
specifically directed below.
2.
All revenue from the date of occupation should be collected
in accordance with the legislation in force at the date of the enemy
Occupation. It is understood that the Japanese have established
a series of business monopolies; these should not be maintained
permanently. The Japanese-run lotteries should not be revived.
Minor modifications in respect of licence fees made by the Japanese
may be accepted at the discretion of the General Officer Commanding.
3. Import Duties. Hong Kong should remain a free port, and
import duties should be confined, as in the past, to alcoholic
liquors, motor spirit and tobacco.
4. Imperial Preference. It may be aɛnied that some measure
of Imperial Preference will be preserved. Fre-war preferences should,
therefore, be maintained, unless and until varied at the direction
of His Majesty's Government.
5. Opium Monopoly.
The Government opium monopoly is not to
be restored.
Inland Revenue.
Until consideration can be given to the
introduction of income tax, the Salary and Business Tax legislation
should be revived as soon as possible as an interim measure.
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Expenditure. As soon as the situation permits Budgetary
Control and estimates of revenue and expenditure should be re-
established in accordance with colonial regulations.