C.D. & W. sources for projects in the New Territories,
I said that I was considering, with the assistance of
the Financial Secretary, possible means of securing
further revenue by increasing taxation in various
directions and by other methods and that I should be
addressing you separately on this point in due course. Your telegram No. 677 of the 14th July crossed my
despatch of the 13th. In it you gave reasons why
increased taxation of tobacco and Chinese and European
liquor would not be advantageous and why an extended
You also purchase tax is impracticable at present.
3.
explained that there would be violent opposition in
the Colony at the present juncture to any suggestion that a revenue surplus, depleted by charges which appear to be still regarded by certain elements as properly imperial commitments, should be re-instated by additional taxation
I appreciate your difficulties in this matter, but nevertheless I should have hoped that as the charges in
question were taken into account when the financial
settlement was reached with His Majesty's Government, terms of which, as stated in your telegram No.526, were accepted by the Legislative Council, it would be recognized that opposition to additional taxation could not be justified
on the grounds indicated.
the
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4. I appreciate that this political objection may make unwelcome any substantial proposals for immediate additional taxation, but I am bound to say that even if charges such as you refer to had not to be met, there would still be need for considerable additional revenue in the years to come, in order to assist in the provision of large items of capital, rehabilitation and development expenditure e.g. the Tai Lam Chung Reservoir project, about which I am separately addressing you. confident therefore that in spite of the latest estimate which places the 1947/48 surplus at $50,000,000 (see paragraph 3 of your telegram No.677) you will maintain your efforts to exploit all possible sources of revenue as and when opportunity permits;
-
I am
(53687/48)
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and