Tel. No. Whitehall 1234
NATIONAL
SCHENT
DISAGI
ED
MU
Your Reference.....5443.5/48.
Treasury Reference
IF.16/10/03
Dear Palmer,
265
4
TREASURY CHAMBERS,
GREAT GEORGE STREET,
LONDON, S.W.1
13th March, 1948
COPY SENT TO ACCUUNTO DE ARTI..
(3). Please refer to your note of 5th March enclosing a draft
telegram in reply to one from Hong Kong dated 1st March with regard to the colony's Estimates for 1948/49.
Your draft has been considered here and in the light of Hong Kong's present circumstances, we feel that your telegram, while it is on the right lines, should be a good deal more pressing.
#
We suggest, therefore, that after the first sentence it should read "After deducting from Revenue $10 million 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 causes). At such a time, the aim should surely be to budget for large surpluses, thus:
(a) Reducing the pressure on loan funds
again RECEIVEaner
(b) Creating substantial reserves against possible leaner
years
(c) Checking inflation
1 4MAR 1948*
Σ
C. O. REGY
(a) Reducing demands on H.M.G. at a time when its resources,
particularly where overseas expenditure is concerned, are so greatly strained".
In addition, we should suggest bringing your last paragraph up to be paragraph 2 in the telegram, with the following amendments
(i) The insertion of "forthwith" after examined" at the end
of the first sentence.
H. Palmer, Esq., 0.B.E.,
Colonial Office.
/(ii)