CO129-582-7 Taxation 6-6-1939 - 5-2-1940 — Page 100

HONG KONG LEGISLATIVE COUNCIL.

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these ports of duty free zones will be in direct competition with Hong Kong.

It may be said that Hong Kong will always be attractive on account of the security offered but I believe the old order in China is over. The new China will be run by Officials whose increasing patriotism will oblige them to do the best they can for their own people. With merchants who are second to none in business acumen and financiers and bankers who are becoming more experienced in the handling of their country's affairs, outside traders will have to look to their laurels.

Hong Kong's phenomenal growth was due to the influx of Chinese attracted by the cheap facilities of our free port, low taxation and security.

Let us beware lest we find ourselves with little to offer but security. Let us look over our stock in trade and see what else we have to offer; the answer is Service but it must be at a competitive price. Low taxation with its corollary, low cost of living should be the aim of this and future Governments.

I make these general remarks, Sir, as some of my Unofficial Colleagues are dealing with specific items in the Budget.

I refrain from speaking now on the War Budget except to deal with the proposed introduction of Income Tax.

The methods by which money is to be raised to assist the Home Government in the prosecution of the War are very much in the Public mind at present. The whole community, I am sure, approve of the proposed contribution and the suggested alternatives to Income Tax, I believe, are not prompted by the self interest of any section.

The European British population to many of whom I have spoken, are whole heartedly in favour of paying their share, but in common with other sections they feel that the imposition of Income Tax is not in the best interests of the Colony.

Let it not be said that the objection to Income Tax means a desire to avoid payment-nothing is further from the truth. I would, there- fore, urge. Government to examine alternatives which will appeal to the Public and ensure if possible their support and good-will in backing Your Excellency's laudable desire that the Home Government be given financial support in the prosecution of the War.

I have nothing further to say on the War Budget as it has already been fully covered by the Hon. Mr. Dodwell and my other Unofficial colleagues, except to remark that the interjection of the Financial Secretary's speech in the middle of the Debate is rather upsetting, and I hope time will be given to make a rejoinder. It is impossible to do so now, but I hope there will be a chance later on to deal with the Financial Secretary's Statement. (Applause).

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