32

es and vben opertunity permits; and in this connection I would varer in particular to paragraph 6 bal.

5. In you telogies 10,67 you suggest a state lottery as a simple at nompiable seen of raising additional fumo, and this was indeed one of the espediente which was alrendy being discursed with the Pinnacial Decret ry, In my telegr≤m=0,724

of the 16th Jaiy I lafonod you that I could not agree to the adoption of this expedient in present circunat:moos and promåsed to give my reasons og tils declai în It is true t'at state lotterieg, are at present in operation in Helta and oibraltor. Thet la Malta has bep tu existence for say y ate

baz

That in Qibraltor was sanctioned last y:ar on the particular ground that the inhabitants o' the relay partialyazoć!" largely in lotteries across the border in (pain and that it wan coanidered more desirable that the colors anŋuld benefit from this activity than a foreign country. I do not regard lotteries gemrally as a desirable expedient beonate they are as unoortida scuros of revenue and their introduction teade to endour age inoal populatăniit in the belief that their financial problems have Laen selvod without recourse to more realistic and drastic mossares; moreov:{}}, even though the state Buy tala tribute from grmbling motivities in such forms as a betħing tax, this does not involve, as e state lottery does, the orgonat. n of gambling by the state. I mu therefore averse from sanotining the establistsnest of state lotteries except in #15 BOQJAl cireuantenose or where it is established that as alternetáve method cứ raising necer ary ISVEJC exista.

6. It ena likel, thịt in Hong Long the most effective way of

ma suba sentiɛlly inercasing revenue in by raising the rate of aria and Profits Tux. *hji# & sppro

Ibu Perrona why akeh e measure is not feasible at prezent, it has not been so gestað shot these reɛeons constitute a permanent objection to gooh a 100EGUIO,

on

7. It was dete! in the course of danomsic with the Financielecretary that one direction in which revenue may be isaproved is by Parthor thoroasang tuo yield ficum antessoŭ taxes, another possibility being core atringent legislation regarding entate duty to us to reisum evasion, buth legal maxi illégel. the latter and on other points it might be of advantage if the Fine cial Secretary cœlä consult with the Board of Inland reven and the Foerd of Trace while he is in this country, and arrongme are belag male to this am. (as you see save, the colony's Comissioner of Income Tez has already been in commultɛtión ¬ith the seerd of Iniemi Rovanuc,)

B. I will sienvour to vesure settlement during the present financial your of the claim of the Hong Kong Government for over $2, ,00 210m the tur vtiles to which you refer in perscraph 2 of your telegram No. 677, and will give wine t 0891368000 I osa in regard to the claius agmimet the Gover{IGY of Indie and Burma which are referred to, in the some place, an which are no doubt the clause deslt with in your ampatohi v0.1 of the 17th July, 19sčio

.

Finally, I would refer to pœɛnible rečuutions in expenditure. This ves mentioned in parną aph 32 of your despatch Ho,100, and I trust that reduction in the present

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