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Me Nicoll which he had been strongly in favour but on

examination it appeared that considerable

additional staff would be required and not a

great return would be yielded. They had been

worried about corruption in the Income Tax

Department and had instituted an enquiry; apart from this the

but

by Collection of income tax from

Chinese who kept three different sets of books

one for the partners, one for the family and one

the individual for himself/ that was a very difficult proposi-

tion.

He had now come to the conclusion that

a more direct tax, for instance on cargoes

coming through Hong Kong, could be more easily

and certainly collected.

They had not yet

succeeded in finding a way of taxing the rich

refugee who was living on capital and who was

really responsible for inflation and for

upsetting the orderly life of the Colony.

(&) Social Welfare.

They had a section

devoted to social welfare and a great deal was

with fours in sut support, done by private charity. The Chinese was much

more ready to finance charitable organisations

than to pay taxes for Government activityes

The Tung Wa hospital with 100 beds, which had

looked after a large number of Nationalist

soldiers who had entered the Colony, was a good

example.

all

Sir Charles Jeffries said that/this put

rather a different complexion on the matter and he

thought it would be worth putting a note of the

discussion to the Secretary of State before deciding

on future action.

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