CO537-1651 — Page 84

3

lways been remarkably light - something under £3.0.0. sterling per capita of the whole population per annum, a figure much less than half f that Tevied in the wealthy Malayan dependencies. of this about 35 per cent came in the form of direct taxation by way of a consolidated rate equivalent to 3/5 in the pound on the rateable value of occupied pre- mises; and a further 5 per cent in the form of Crown Rent. The balance came chiefly from indirect taxation - tobacco, and liquor duties, postal charges, railway revenue, entertainment and betting Taxe 5, a variety of royalties on utilities such as the telephone system, fairies and land transport and the usual fees of court. There are no customs duties proper and port and harbour dues have always been kept at a very low rate; the Treaty of Nanking in 1842 gave as the chief objects of the cession of Hong Kong the careening of ships and the storage of merchandise, and docks, warehouses and cargo-handling facilities continue to be the Colony's main physical assets.

In the recent European war a system of War Taxation (roughly analo- gous to Income Tax) was introduced partly to finance local defence mea- sures (A.R.P. and the rest) partly to cover considerable war contributions to the home Government. If these measures are re-introduced they will presumably be given another name. Council was assured that they were not intended as a permanency.

moreover

To many observers the administration of the twenty-odd departments of Government, and in particular the large proportion of European offi- cers employed, has appeared extravagant in view of the geographical

• smallness of the Colony. On the other hand this small area contained a population about the equivalent of the whole of New Zealand; with a population 96 per cent Chinese and only 4 per cent non-Chinese a bureaucracy which would be inconspicuous in a total population of a million odd appears heavy when it is contained, for the most important part, in the small non-Chinese portion of that population. The lightness of the taxpayer's burden and the efficiency of the machinery was seldom questioned.

The chief spending departments, each with a large European and native staff and each with the usual sub-departments, are the Public Works, the Medical and the Police. Other technical departments comprise the Harbour Office, the Railway, the Royal Observatory, the Fire Brigade, the Prisons and the Botanical and Forestry department; with the Legal offices of the Attorney General, the Crown Solicitor, the Land Officer and the Official Receiver. Most of the other departments had their Heads and Assistant Heads drawn from the Administrative service specially recruited and trained to deal with the Chinese, namely Education, Imports and Exports, Post Office, Urban Council Chairmanship, two District Offices and (senior to all these) Secretariat for Chinese Affairs (with four or five Assistants).

Over all these departments, and the link between them on the one hand and the Governor and two Councils on the other hand is the Colonial Secretary with four Assistants of Administrative rank and a large clerical staff. The Financial Secretary, with assistants and an Accountant General under him, has also a seat on both Councils and direct access to the Governor in matters of finance.

In the background is the Colonial Auditor and his staff who, though paid from local funds, reports direct to the Director of Colonial Audit in London.