267
Draft Telegram
GOVERNOR
HONG KONG
fuck
д
twite with boy of it can be ippled funds, Capital which has bitte is cotaped,
стру
have
rearsed
as and invest, ples
dy em
:/
Your telegram No. 234. 1948/49 Estimates.
1. I note revenue estimated g150 millions on conservative basis and expenditure $148,750,000 thus showing a small surplus. Deducting from revenue glo millions arrears relating to current year and deducting from expenditure two items in paragraph 4 of your telegram, would result however in a deficit of $2,250,000 which is somewhat disappointing bearing in mind the great commercial prosperity in Hong Kong.
2. Is revised revenue estimate current year $147 m after allowing for 10 m. arrears carried forward to next year or is actual cash revenue estimated at
137 m.
3.5°
What is revised estimated expenditure current year.
406 Grateful for further information
regarding S.T. I. profits.
5.2 In view of the poor response with which I understand first issue of the 850 million loan has met and the small surplus envisaged next year even after allowing for glo m. arrears of revenue from current year, I consider all possible measures to increase revenues still further including the raising the present rate of the Earnings and Profits tax should be examined. As the Colony is experiencing great commercial prosperity at present, it would seem that an increase of taxation could be borne now without hardship. I consider aim should be to budget for considerable surpluses not only to meet liabilities which would otherwise have to be charged to loan funds, but also to build up reserves against the time when the Colony may be in a less prosperous state.
40 3
Bring
6.3 I should be glad to learn what steps
you consider can be taken with the above end in view.