CO129-558-3 Levy on Salaries- petition from Chinese Civil Servants 3-1-1936 - 19-12-1936 — Page 33

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the interests of the remaining sections, many

of which are better able to bear taxation.

As regards the urgent financial

need which called for some special measures

in relief of the budget the Governor's despatch

to my mind makes it clear that the difficulties

were and are very real and that it is not

possible to share the view of the petitioners

that surplus funds could have been used to

meet the difficulty without any special

measures.

As regards additional taxation on the

general public, we are assured by the

Governor in paragraph 9 that the suggestions

in the memorial with other possible lines of

action are receiving every consideration, but

the Governor very pertinently points out that

the maintenance of the fixed "conventional"

dollar rate for payments of import duties in

Hong Kong ($1 = 1/8d.) materially increases

that form of taxation when the current exchange

fallsto

rate $1 = ls. 3d.;and in fact he observes

that the sum of the increased collection of

revenue on this account is estimated to be

rather more than the saving which will accrue

from the salary levy. (Para. 8)

The petitioners' reference to the

substantial levy on salaries in 1931 is

rather lacking in candour. On many occasions

in the past special arrangements have had to

be made in Hong Kong to meet the periodical

difficulties arising from the fluctuations in

the sterling exchange value of the dollar and

particularly in the last seven or eight years

were

Cancelled on 11

when dutres

Abril,

merovid

see 15203/32,

3

Economic

*