CO129-576-10 Estimates 1940 6-10-1939 - 22-10-1940 — Page 21

reason why this should not be done by telegraph

ould

without comment. We shall follow up by a despatch

referring to correspondence on other papers

regarding the question of issuing the balance of

the 1934 loan and saying that the Governor will

no doubt transmit a further report as soon as the

controversy, regarding the imposition of income-tax

or alternative sources of revenue to meet special

war expenditure, has been settled as a result of

the further consideration of the problem in

Hong Kong.

Entent

3.1.40.

I agree to the action Mr: Gent proposes.

I do not under-rate the importance of the criticisms

which have been made as regards these estimates; but,

in a situation which involves so many important but

uncertain considerations, it seems to me that the

wisest course is to accept the opinions of the

local authorities. They are much closer to the facts,

and are in a much better position to assess the

probabilities, than we are here.

¡

I have read mr: Caine's vigorous speeches with

much interest--and some amusement. And I am the

more ready to accept the estimates here, without

comment, as they are nis handiwork.)

The 4th: January, 1940.

لالية

4/1/460