SECRET
HONG KONG
CIVIL AFFAIRS POLICY DIRECTIVES
54132
Revised Draft
22/5/44
10
FINANCIAL POLICY
The general aim of financial policy will be to distribute
the burden of taxation, required for the purposes of the community,
In general, among the community according to its ability to pay. 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 assumed that some measure
Pre-war preferences should, of Imperial rreference will be preserved. 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.
6.
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.
7. Expenditure. As soon as the situation permits Budgetary Control and estimates of revenue and expenditure should be re- established in accordance with colonial regulations.
Salaries. Pre-war basic scales for Government salaries
should be maintained except where specifically altered.
/9.