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.
3. Your telegram No. 677 of the 14th July
my
crossed 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 purchase
tax is impracticable at present.
You also
explained that there would be violent opposition
in the Colony at the present juncture to any
sug estion that a revenue surplus, depleted by
which appear to be skill by cestam elements charges ati/regarded as properly imperial
commitments, should be re-instated by additional
taxation.
Insert
X
4. I appreciate that this political
mathe in welerme,
objection may rule out 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
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to assist in the provision of large items of capital
and developmental
e.g. the Tai Lam Chung
-and rehabilitation/expenditure
Reservoir project, about which I am separately
addressing you. I am 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
176
(53687/48)
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