CO129-576-10 Estimates 1940 6-10-1939 - 22-10-1940 — Page 19

19

The Japanese

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declared anthem to respen the на

Pearl Rive

to Canton) w11 atous benefit

situation in which all Hong Kong's surplus assets

have been now advanced against loan expenditure.

On the revenue side, it has for many

years past been possible to take a pessimistic

view of prospects. The Hong Kong Government itself

has consistently and substantially under-estimated

its revenue.

Throughout 1939, with the exception

of a few weeks in the late Summer when the

In

Japanese were physically occupying the frontier

line of the Colony, the revenue maintained a steady

and substantial increase over the 1938 figures. 1938 revenue exceeded the estimate by 61⁄2 million

dollars and in 1939 was expected to exceed the

estimate by 42 million dollars. There are all the

again

elements present now to take a pessimistic view,

but the only new situation which can be said to

distinguish 1940 from 1938 and 1939 is the war in

Europe and there is no obvious reason why that

should reduce the revenue of the Hong Kong

Government or materially increase its normal lines

of expenditure. The continuation of the restrictions

on the use of ports on the South China coast by

other than Japanese vessels is not likely, except

possibly in the long run, to lessen the importance

of the facilities provided to commerce and shipping

at Hong Kong.

As regards the proposed revenue from

income-tax, which was to amount to some 10 million

dollars, the greater part of which was to be

presented to H.M.G. as a war contribution, I have

just heard from Sir Geoffry Northcote that the local

Committee which was set up to give further

consideration to income-tax as a result of the

Legislative Council debate, has unanimously agreed

to the four substitute measures proposed, viz.

property