CO129-586-12 War Taxation- royalties from public utility companies 25-4-1940 - 17-6-1940 — Page 2

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

C.T

FINANCIAL

Hong Kong

Col Sex 870. 25-4-40

y

been incorporated

しい an

nding

Electricity Co's. difficulty.

Arrangements with Telephone Co. have

Ordinance. The Gas & Ele

howeved present move

Enquires

royalties

bitie

-

ame

as to Colonial Legislation regelg

on

public utility Co's.

Seep 12-13 of the Repose of the Taxation

coby anmaxed. It wil be

one that this bitte.

posited and that the bas Electricity borp. in I. Kong enjoy monopolies of fact but not of law; that they

no royalties to bort. that their charges present unregulated.

pany

are at

The recommandy of the bite. was that the honopolies shed. He quai a legal foundation;

othat' in return the boys, died. be required to d

pay royalties

o subint to the regulation of

charges. As a basic principle the bite.

theni

recommended that royalty showed be calculated with relation to the propies in excess of some

agreed minimum retum on

gone through

capital

(The aughs with the Telephone too. Hav

54049/40 below).

have

an adce. has been prosed- vide

The immediate ponit is whether there

is any other bot legly, regarding the infosition of royalties an existing public utility companies.

ban you help pse?

mals recutul 2875740.

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