CO129-568-4 Estimates 1939 8-10-1938 - 6-7-1939 — Page 21

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As regards (A) in Mr. Rogers' minute -

the matter of a local survey of the present basis

of taxation

-

I am not sure that there would be any

advantage in the Secretary of State singling that

project out for specific approval, and indeed I rather

doubt whether in present circumstances there will be

any great advantage resulting from such a survey.

Neither Shipping nor Trade, nor any big South China

Insurance or Banking, or other business can be expected,

in present circumstances, to co-operate very heartily

in any scheme of a broader basis of taxation which,

if it is to mean anything substantial, must draw them

Fold

and their operations into the wa.

I suggest that we should telegraph approval

Ava

of the Estimates and of the resolutions authorising

and expenditure. ture/f

loan expenditure/from the Waterworks Renewals Fund,

and that we should follow this up with a despatch as

Mr. Rogers' propos es, but instead of referring to A

in his minute, we should say particularly that the

Secretary of State notes that the Governor will keep

the revenue position constantly under review, and that

in the event of its deterioration, it will be possible

to curtail further expenditure of a non-recurrent

character as well as deferring expenditure on certain

maintenance items.

2

Shant.

.1.39.