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ORIGINAL ON 54002
54002/39.
53593/39
51
TELEGRAM from the Governor of Hong Kong to the Secretary of State for the Colonies.
Dated 28 th.October, 1959. Received 10.42 a.m. 28th Oct.1939.
No.373 Confidential.
15/56223139
Your telegram No.249 Confidential. Unofficial attitude towards
the income tax proposals has so far turned out much less favourable
:
then I had reason to expect when I
submitted it to you. Chinese ugh professedly willing to accept further taxation in order to
reise large annual revenue for war purposes here and in Europe are opposed to income tax principally, as they admit, becase of the disclosure of business secrets. Among the British Suropeans there is a genuine desire to contribute to Great Britain's cause never ineless Committee of the European Chamber of Commerce has unanimously recommended the Government to impose new taxation
on lines other than income tax. No details of the Government's
proposals were before the Committce at tais discussion. Committee containe coneultaes of the Government érter whose agreemwt that Income tax should be imposed 1 seat my telegram No.324 Confidentil,
12/54092139
On the other hand every British and Chinese unofficiel wat has
been invited to sit on the Committee which will examine the
Jvornment's present prupusals in dctail has accepted and i am not without hope that by means of explanation and compromise we shall
*
gain. acccptance by the majority of the European Chamber of Commerce and considerable modification of Chinese opposition to the measure, It is too early to lay detailed proposals before you but I would be glad to know if you think that it
1
would be
justifiable to confine the measure to the duration of the war either by including an automatic repeal clause which would, say, make the Ordinance inoperative in the next financial year after the conclusion of hostilities or by giving pledge now that income tax
would
tive
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