CO129-558-3 Levy on Salaries- petition from Chinese Civil Servants 3-1-1936 - 19-12-1936 — Page 62

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or gulling much catter & a

balanced budys

should have thought that the Secretary of State would

find it difficult to contemplate with equanimity

evin

so large a deficit as the Governor foreshadows evey

for 1937, that he could certainly not do so for any

subsequent year. It seems to me therefore to be a

matter for consideration whether the Governor should

not be told at once that further and more drastic

measures must be contemplated, and asked to draw up

a programme with a view to balancing the budget in

1938. It will have to be recognised that such a

hos programme will probably include - as it is included

Amporary in other colonies the withdrawal or reduction of

allowances to officers in addition to a salary levy,

the curtailment of Government activities with a

consequent retrenchment of staff, and even perhaps

急富

the imposition of fresh taxation of an emergency

Regrettable as such steps would be, in

character.

the last resort financial considerations must, subject

to the maintenance of essential services, have

priority over other factors.

It need not of course be contemplated that

such a programme should be put into effect in its

entirety at once. It could be applied in stages, as may appear necessary, in the light of developments

from time to time, and no doubt it would help matters

if the Governor could put his various proposals in

order of priority; but it is surely better that

preparations should be made in advance than that the

Government should be faced with having to take

measures of this kind in a hurry.

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