CO129-574-2 Draft programme of public works 5-8-1938 - 23-9-1938 — Page 7

7

the present low level of taxation. I

that it comes be desirable

agree with your view in this matter,

and if extra taxation should prove

Lodo so.

necessary in order to meet an extension

of the current charges in this respect

I should be prepared to approve it. Conoit ins now prevailing

the existing circumstances in the Far

btcome

In view of

the come of which it is imporsitte

East I am inclined to consider that it

^

wize

Want

would be desirable for Hong Kong to

maintain a liquid reserve higher than

the $10,000,000 which it has previously

been the aim of the Colony to maintain☛

Lad

This

point will no doubt be most

carefully considered when the programme

to pussit

of public works has assumed a more definite

shape and the probable cost can be more

accurately estimated. In this connection

I would invite reference to Lord Harlech's

despatch No.122 of the 6th of May, and

previous correspondence. If difficulties-

are found in financing the scheme as it

stands, I

o observe that scheme

provides a measure of elasticity in the

(13 on 53652/37)

spacing