He 303.
53652/45
24) on 53 6 5 2
53152/08
Colonial of ice,
The Church House,
Great Imith Street,
the
24 september, 196,
27
31
sir.
I cave the bon ur to refer to your dampaton No.1 C of the 7th May, 1948, tranmitting copies of the colony'a Katimaton for the financial y # 196/49. in Garfirmation of my eleprom 3 .751 of the 7th July I now convey my formal ap yaval of the usti vtee en inform you that lia i, ja ty's'parer of dia:llow nce will not be ezaroised in respect of the appropriation for 1948/49 Ordinace (#11 of 19o) saclased with your Respatch 20, 32 of the 19th April, 1948,
ti
2. la wy telegram No. 751 I said that I considered it stili negeseury to give permanent strengthening to the revenue structure and asked if you would consider further an early as possible what measures could be taken to this end; and I referred to the posibility of increases in the texes on liwuor and tobacco and in purchase tax.
In my deeatch #c. 259 of the 13th July, 1940, about
soarees for projects in
acristanos from (.). Territories, i said that I was considering, with the a sista:ce of the Finaseial Decretary, possible means I seeæring further reveme by ingrosaing taxatioa in various directi ne and by ther methods and that I abo :ld be BUFDUBLJE you suparately on this point in du? cour 30.
3
Your telegram 1:0.677 of the 4th July crosced by despesch of the 15th. In it gave reasons why ingroaned tuzati a of tobueno ani Chinese säð -uropean liquor void not se mivantageous and why ɛn cœtended purobare ta la impracticable at present, You also explained that there would se violent oppositi a la the Colony ut the present jurture to any sup enti a ühe revenue surplus, depleted by charges which appear to be stili regarded by certain elements as properly imperial comitesite, ahould be re-instated by additionel taxati a I appreciate your difficulties ia this wetter, but neveränslene i should have hoped that sn the charges in question were taken into account when the fiancisl set-levent was rescued with Hi~ Majo ty's Domermont, the terma of which, se stated in your telegria k..526, were nocopted by the Legislative Council, it w uid * recognised that opposition to ad iti nel taxation could not be justified on the growds intiosted.
40 I areolate that this political objection sy ake unweleze any nubatantiel proposals for imediote morati mul taxation, but I a bound to say that ersa if charges such as you refer to bad not to be met, there would still be led for emi «rable additional revenue in the years to come, in order to sasist in the provision of large items of expátek, robnkálataiian var. develop ent expenlitære - g. the Tai Lan Chung Reservoir project, about which i rt: sæperstely addressing youa I e confident therefore that in mite of the latest estimate which places the 1947/4 surpi s at 45 1ɔxo (see paragraph 3 of your telogr B.677) you will maintain your efiorte to exploit all possible sources of revenue