CO129-582-7 Taxation 6-6-1939 - 5-2-1940 — Page 139

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for licensing system to be applied to any goods I may

designate by order and to apply it in first place to motor

vehicles and radios. Extension to other articles under

consideration.

(3) Net imports (1.e. local consumption) of certain

goods of semi-luxury character obtained largely or entirely

from non-sterling sources can be diminished by heavier

taxation Enactment of (a) petrol (non-sterling);

increase from thirty cents to sixty cents per gallon, with

relief to buses and other diesel commercial vehicles by

leaving heavy oil at thirty cents and relief to petrol-

driven commercial vehicles (excluding taxis) by reducing

annual licence fee to nominal amount representing saving

of 90 to 120 dollars in most cases, (b) wines and spirits;

increase of non-empire rates on non-empire products by 200

per cent and empire by 25 per cent. Canadian imports are

unimportant. Duties on unused photographic film,

cosmetics and perfumery considered but are thought not to

be worth while at present.

(4)

Certain other imports can be somewhat. reduced by

economies of Government's own consumption. I am taking up

particular economies in the use of stationery and coal.

(5) Commercial Secretary is getting in touch with

Trade Commissioners in India, Australia and other empire

countries as to their possibly replacing imports from

North America of e.g. fresh fruits and canned and packet

gooda,

Faragraph 2. I should be glad of indication of your

views as to the following particulars. (1) Coal trade is

particular problem as supplies from all nearest sources

Japan, Horth China, Indo-China and Borneo are doubtful

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and