53652/49
Code
Fa (27)
55
OUTWARD TELEGRAM
FROM S. OF S. COLONIES
TO HONG KONG (Sir A. Grantham)
Sent 24th August 1949, 11.45 hrs.
No. 1135
Confidential
Your despatch No. 92 Confidential.
Estimates.
Very grateful for your clear exposition of situation and your indication of possible future loan requirements, I approve 1949-50-Estimates. comments follow by mail as soon as possible.
2。
Certain
Moonwhile though I realise the possible political difficulties -- I am still by no meara satisfied that some further increase in taxation is not both desirable and possible, I shell revert to this in my despatch. Apart from reasons elready advanced in favou of increasing revenue and apart from likelihood of
ncreasing liabilities with which Hong Kong may be faced, there is also the point that in considering whether they could facilitate access by a Colonial Government to the London market, H.M.G. must satisfy themselves that all local resources are being fully exploited.
Copies sent to:-
Treasury
Mr. R.B. Moberly
16