C.O.

To:-

Draft

TELEGRAM/SAVINGRAYX

>

GOVERNOR, HONG KONG.

File No.

53652/48

Coded

Sent.

Mr. Palmer 15/3/48

Repeated to :—

Mr.

Mr.

Mr.

2200 hours.

15/3/194.48

Cit.

To be transmitted :—

Mr.

Priority :-

No.

307

Permt. U.S. of S.

Parly. U.S. of S.

In Clear

Code

Cypher

NIL-

Reply urgently required.

Bestricted:

Funportant

Confidential.

S. of S.

Immediate.

-Top-Secret.

RECEIVED

5 MAR 1948

Int

Distribution :--

Copy to _DR. Serpell on

Your telegram No. 234. 1948/49

Estimates.

1.

I note revenue estimated

$150 millions on conservative basis and

expenditure $148,750,000 thus showing a

small surplus. After deducting from

Revenue $10 millions arrears relating to

the current year, however, there is a

deficit on the year's working of

$8,750,000.

I feel that this position

calls for a review of the Colony's

policy in regard to revenue in view of the

present boom conditions (and their

I fish wise you world my out that causes At such a time the aim should

and that-

Suma be to budget for large surpluses,

thus:

(a) Reducing the pressure on loan

funds

(b) Creating substantial reserves

against possible leaner years

p??

(c)

Checking inflation

any

(d)

Further action :-

Recurve for ceps KNO• if

Reducing demands on H. M. G. at a

time when its resources,

particularly

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