CO129-582-7 Taxation 6-6-1939 - 5-2-1940 — Page 16

A

series pole as fores

пей

The chee, reported in the expectation That an

e way

expert would prepare the before income tax was introduced.

Moreover, it-- should not really, be

to budget deliberately for a

necessary to

Gift for Imperial Defence, though our

Circ. tal. No. 72 ((34) on 53652/1/29) seems

deliberatelyn

to invite one

The present burders

by emphasizing

on the British baxtrager

for the

as being the sole ar main reason

increased taxation in the Colonies, which

Inal belegram demands

The Secretary of

on the second

State on

coper of (12) has proposed discussion as to discouraging such gifts.

Though this may be the first such offer since the war began, there were many before it from Malaya, and they were accepted with gratitude provided they were unconditional, a without

asking whether the

money

could be better

spent in other directions Hong Kong's

prate

routine

"Defence Contribution itself might

be regarded to some extent as such a gift, though it is for its own defence & is not entirely voluntary.

Whether in

was conditions it would be

(local

possible to lay out wiedly lovely itong Kong

on

projects the money which might be given tour Imperial Defence is

matter for

speculation, but my own view is that it is undesirable to attempt to raise so

much,

and that

more modest rate

[ot