CO129-562-4 Levy on salaries 27-5-1937 - 28-6-1937 — Page 11

No 353.

AIR MAIL

T

Sir,

11

GOVERNMENT HOUSE,

HONG KONG,

27th May, 1937.

Ausa (2)

(2)

2557097/4/35/

With reference to your despatch No. 90 of 24th

February, 1937, approving the enactment of the Hong Kong

Government (Levy on Salaries) Ordinance, 2 of 1937, and

to previous correspondence on this subject, I have the

honour to inform you that, subject to your approval, I

propose to invite the Legislative Council to adopt a

resolution cancelling the percentage deduction from the

salaries of all public officers in the Hong Kong

Government Service with effect from 1st July, 1937.

Provision for such action is contained in section 2(3)

of the Ordinance under reference.

2.

As you are aware the levy on salaries of civil servants was originally imposed on 1st January, 1936, at a time when the Colony was faced with a Budget deficit

of $3,000,000.

The total saving effected by the levy during 1936 was $1,144,000 and when the accounts of that year were closed it was found that instead of a deficit the

Colony had a surplus of slightly more than half a

million dollars.

3.

At the time of framing the Estimates for 1937, however, the financial outlook was still obscure and it was thought advisable to budget for a deficit of three

THE RIGHT HONOURABLE

W.G.A.ORMSBY-GORE, P.C., M.P.,

&C.,

&C.,

&C.