CO129-577-1 Estimates- effect of war on colonial estimates 15-9-1939 - 4-10-1939 — Page 13

13

imports may well be restricted also by

Difficulties of shipping.

(#)

(11)

Preoccupation of industry here

and elsewhere with more essential

waz wspoles.

Whatever the value of exports fulling off in volume of imports is therefore probable with consequent falling off

of normal revenue and accumulation of funds locally.

(e) A number of services in connection with war

activities are likely to involve some fresh expenditure by

almost all Colonial Governments.

•

2. Financial effort necessary to secure successful

prosecution of war will entail unprecedented sacrifices by

United Kingdom taxpayer.

Continuance of assistance from

United Kindom Sxchequer, whother directly or through

Colonial Development Fund, 111 in any event be difficult

enough and difficulty would be increased if it could be shown,

that people of Colonial Empire were not already bearing their

full shuro of the Turden.

с

In these circumstances I consider that it is

important to ensure that all classes make the maximum

contribution to revenue which it is reasonable to ask having

regard to their taxable capacity and I suggest that existing

taxation should be reviewed with this end in view.

Resolutions which have been received show how anxious the

people of the Colonial Empire are to help in its defence und best psychological moment for securing consent to increase of

taxation would seem to be in near future, possibly immediately

after introduction of emergency budget in this country.

date has yet been fixed for this, but I will advise you when

it is known 6

༢༥