CO129-526-12 Proposals to raise additional revenue due to revised salary schemes- etc. 16-6-1930 - 23-2-1931 — Page 28

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EXTRACT from letter from Sir William Peel to

Sir Samuel Wilson. Private and Confidential.

Dated 2nd July, 1930.

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There was a great deal of Press and other

opposition to the revised salaries scheme, but the main opposition was based on the fact that the dollar

at present is very low. My view, which I expressed in Council, was that, if we accepted the Commission's

report, which Government did, the payment of the

suggested rates simply became an overdue debt, which

must be discharged. Southorn rather wanted to

postpone the resolution until the dollar improved, but

I came to the conclusion that, if we delayed, the

snowball of opposition set rolling by the Press would

gradually grow and make the whole thing more difficult. I was averse, however, from raising the assessment

rates, which would have resulted doubtless in a

rise of rents, so explored carefully other avenues

of taxation. Tobacco, petrol and stamps will be

fruitful sources, and the new taxation has caused

little outery. In taking this line I felt that we

should probably undercut a good deal of the opposition.

In this I seem to have been correct, for since the

resolution was passed in Council, we have heard very

little about it. The Chinese members on the whole

were in favour of a revision, but deprecated its

being