5
a
when and it decision to intro- duce a State
Lottery were housed
open to the objection that they constitute a deliberate encouragement of gambling by Governments.
On the above grounds we have recently discouraged a suggestion for a State Lottery put forward (without any supporting reasons) by the Governor of the Leeward Islands. I very much wonder, however, whether the objections really apply at all in the case of Hong Kong. It is proposed to adopt all necessary measures of a more orthodox kind to bring in revenue as soon as the means are available, and this would clearly have to be stressed, On the other hand, the Chinese population of Hong Kong are in any case inveterate gamblers and need no encouragement. They already have ample facilities for gambling at Macao, and would doubtless also have opportunity in China itself if conditions in China were not so chaotic. There is a local demand for a State Lottery which has been voiced in the Legislative Council on several occasions, and Mr. Follows has no doubt whatever that from the financial point of view the results would be highly successful. (Sir S. Caine, to whom I have mentioned the matter, was inclined to consider that the Sweepstakes Organised by the Jockey Club already answered the purpose, since they are heavily taxed by the Government; but Mr. Follows says that a State Lottery would appeal to a much wider public and would undoubtedly bring in a great deal of additional revenue).
If it were to be agreed by higher authority that we suggest to the Governor that he should
hesh consider this possibility (the suggestion', as I have said, has already been widely canvassed in Hong Kong so we should merely be taking up a local idea), my personal feeling is the circumstances of Hong Kong are sufficiently special to avoid creating a precedent and to give the Secretary of State ample material for replying to any criticism in Parliament - especially since he has already stated in Parliament that he is prepared to consider individual cases on their merits. I think the financial results in Hong Kong; in helping to draw on surplus money and build up Government reserves to a proper level, would undoubtedly be salutary.
If it is at all possible for me to receive guidance on this subject before the end of this week I shall be extremely grateful, since we have a further discussion with the Treasury at 11.30 next Monday morning.
13.
13 Hong Kong tai Ha
вег
412
H.T. B.
T.B_
24th June, 1948.
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