CO129-584-2 Estimates 1941-2 21-2-1941 - 11-6-1941 — Page 193

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So far from local defence and war expenses not aggregating

me than 2 million dollars per annum they have in fact aggregated al-

most 12 million in the last year, due chiefly to expenditure on A.R.P.

and food reserves. Two contributions of £100,000 each have been made

to H.M. Government bringing the total war expenditure to 15 million

dollars. I may add in passing that this Colony is further contribut--

ing £200,000 per annum for the period of the war from the profits of

its Exchange Fund, while almost a further £100,000 has been raised in

the past year by voluntary subscription through the War Fund inaugurat

ed by the South China Morning Post and Hong Kong Telegraph.

The excess of $5,300,000 on war expenses has had to be met

from ordinary revenue, and to increase that tobacco duties were raised

in September. The tax on cash sweeps has been doubled and postage

rates are about to be raised. The recent increase in railway charges

has not been to produce revenue but to offset the increased cost of

coal, and the aim of the further increase in the petrol duties was not

to produce more revenue, but, by reducing consumption particularly in

respect of private cars, to conscrve foreign exchange and save tanker-

With the assistance of this increased taxation it is hoped that

ordinary revenue, which has come in well all the year, will be suffi-

cient not only to meet increased ordinary expenditure but also the war

expenditure not covered by existing war taxation. I should like to

remark in passing that it is difficult strictly to demarcate ordinary

and war expenditure and that many items of expenditure in the printed

estimates of this year and the draft estimates for next year are eithor

due to or increased by the war.

age.

I now come to the resolution before Council "that the

draft estimates of cxpenditure for 1941-42 be approved". These

estimates amount in all to $62.399, inclusive of $12,300,274