53652/4
M 303.
Russell it
munds
Colonial of ice,
The Church House,
eta.
crest smith Street,
th
24 Ceptember, 1948.
166
24
sir,
I Lave the honour to refer to your despatch Ho. 100 of the 7th tiny, 1946, trammitting copies of the colony's Entisetes for the financial y or 1948/49. in confirmation of ry seløgrom # .751 of the 7th July I now convey my formal approval of the Esticntee and inform you that His Majesty's porer or disallow!NCO will not ce exercised in respect of the Appropriation for 1948/49 Ordinance (Ho.11 of 1948) enclosed with your despatch No. 82 of the 19th April, 1948.
2.
No.751 1
In my telegram No. 751 I said that I considered it still nece: Fury to give permanent strongihaning to the revenue structure and orked
gåva if you would consider further an early as possible whot mencur ve could be taken to this end; and I referred to the possibility of 104762240 ine7ee360 in the taxes on iiwuor and tobacco and in purchase tax.
in y despatch Av. 209 of the 13th July, 1946, about
assistance from C.D. & §. Bouroam for projects in the New Territories, I said that I wee consiùering, with the asistance of the Financial Secretary, possible means of securing further revere by increasing taxation in various directine and by other methods
What I should te podrecuing you separately on this point in
3.
Your telegra: 2o. 677 of the 14th July crossed by deepauch of the 15th. in it you gave reasons why increased taxation or tubucco and Chinone
uropesa liquor would not be advantageous aac why axed purchase tax is impracticable at present. You aleo explained that there would be violent oppositi n in the Colony at the prosent juncture to any sug esti a thet a revenue surplus, depleted by chargee which appear to be still regarded by certain eleronte as properly imperial commitmente, should be re-instated by additional taxation. I appreciate your difficulties in this matter, but nevertheless I should have hoped that ce the charges in question were taken into account when the financial settlement was rocked with His Dajecky's Cowræent, the terms of which, da stated in your telegro #t.526, vere sæcepted by the Legislative Council, it could a recogndeer that opposition to ad it al taxation could not be justified on the grounds indiested.
منا
i appreciate that tula politicul objection may make umelccre any substantiul proposals for imediote ad it. wal taxation, but I ara bound to say that even if charges such as you refer ve had not to be nes, there would still be ed for considerable additional revenue in the yearn to com in order to assist in the provision
of large items of ospital, rehabilitɛtim mať develogueda t expanditure - .. the Tai Lam Chang Reservoir project, about which 1 separetely odcreasing you. I am confident therefore thet in spite of the latest entiate which place the 1947/40 surplus at Bau,quv (nee paragraph 3 of your telegr. 86.677) you will maintuin yɔur af orts to exploit all possible sourden of rovenus