(1)
Extract from the
SOUTH CHINA MORNING POST
dated
28 th
June,
1941.
WAR EFFORT
Governor Speaks On Empire's Danger
HONGKONG'S PART
Whether people in Hongkong realise fully the gravity of the situa- tion in which the British Empire finds itself to-day was one of the points raised by His Excellency the Governor, Sir Geoffry Northcote, when he spoke on Hongkong's War Effort over ZBW, the Hongkong broadcasting station, last night.
a
His Excellency said: On May 29, I made two announcements in Legislative Council: the first was that I had appointed Committee to examine Hongkong's economic war effort and to advise how it might be strengthened and intensified; the second was that Government pro- posed to raise the War Revenue Taxation to a general basic level of 7 per cent and 14 per cent with revised abatements for earners of low salaries. This evening I am seeking a wider audience, partly be- cause what I want to do is to go over the same ground rather more fully and partly in order to say publicly and frankly what was in my mind when I spoke in the Council.
le
I will put my main point in the form of a question or two. Do Ye here in Hongkong realise fully gravity of the situation in which he British Empire finds itself to-day? Is it really borne in upon us how imperative it is that we should now throw every ounce of our weight into the struggle which Great Britain Is maintaining against the enslave- ment of the world? The time has gone by for complacency. The time has come to face facts: to acknow- ledge to ourselves that if the British Empire is to survive this war we, to- gether with all its other colonies, have got to tighten our belts and play our part in like manner with that in which the people of Great Britain are playing theirs,
at any
rate so far as circumstances allow us to.
The
will
that
Economic Threat gravest peril by far threatens the British Empire to-day is not the German raider or invader by land, sea or air: it is not the tank, the bomb, or the torpedo that we have most to fear: our greatest danger unquestionably lies on the economic side. If Hitler is rash enough to invade the British Isles he will rue the day on which he does it-we are more than ready for him. The German submarine and raider have done us enormous harm at sea: nevertheless we are slowly and surely, with the help of good friends, winning the battle of the Atlantic. Many streets and great buildings in the cities of England, Scotland, and Wales have been smashed: but we are giving Germany's factories docks and arsenals to-day more than she has given us; and as the months go by the scale of our attack will rise higher and higher. But all those glorious feats will avail us but little
unless the Empire can find more and ever more ships, planes, arms and ammunition for our Fighting Forces wherever they may be, and food for the beleaguered people of Great Britain.
that
de-
Can
And the provision of all great category of supplies pends principally on this: the British Empire stand the enormous, the hitherto undreamed- of, strain on her resources which their furnishing entails? It can; but only by one way, and that is for every unit of the Empire, large and small, rich and poor, to do its utmost-and I give that word “ut- most" its fullest meaning-to that one end. In the old phrase, it is for the British to-day a case of "Root! Hog, or die." That may sound des- pairing to some ears; but I am at the other end of the scale from despair, knowing as I do from my own sixty years' experience, as well as from history, that once the British hog realises that he has got to root,
root he does and he survives!
War Savings Certificates Well! the time has come for that process. How are we going to set about it? In the first place there is the Economic War Effort Committee. You may have tasted its first-fruits with your early morning tea, but its task is not going to be such going as that for the most part. more technical bit of work which they have put through is to draft a scheme for the sale of local War
which Saving Certificates
easy
A
hope, meet with the approval of the Home Authorities. But the main problems which the Committee has to solve are: "How can the importa- tion into Hongkong of non-essential goods be reduced to the minimum?” "How can the consumption in Hong- kong of necessary commodities be administered with the maximum of economy?" And lastly, "How can these restrictions be brought about without two very dangerous reac- tions being entailed? That is to say, without killing the mainspring of the Colony's prosperity, our entrepot trade, and, secondly, without crippling our growing ability to supply the Navy, Army, and Air Force and the Merchant Service with what they need to fight and to win this war?"
perhaps the most vitally im- portant of the three.
Tonnage, Labour and Sterling. These three are vital factors in the Economies of War, and we must strain every nerve to conserve them to the utmost.
The scope of the Economic War Effort Committee's labours is vast, but even so it does not cover the whole field; for though I would not shut them out from consideration of its possibilities, I have not specifically mentioned taxation in their terms of reference. In taxation, however, Government has a more flexible and more effective instrument for enforc- ing economy within the community than any other. I do not propose to-night even to suggest how that instrument can be put into further use, but I will quote a few words from the Chancellor of the Exche- quer's speech in the House of Com- mons on the last Budget, which go straight to the fundamental principle which I have in mind:
nor
re-
"The primary object of these pro- posals is not to obtain taxation for taxation's sake,
to raise venue for the sake of revenue, but to make a considerable cut in pur- chasing power during the war."
Taxable Limits
Given then, that it is our bounden duty to take upon our shoulders a heavier burden of taxation—and that, I contend, cannot be refuted--there comes the question of "ability to
course,
is a most pay." That, of will, I
intricate matter and I can only deal with it very generally to-night. I would begin by saying that any in- crease must be either in direct taxa- tion-as for example through the War Revenue taxes, unless those are replaced by an Income Tax-or, if it is in indirect taxation, must con- cern itself solely with luxury and semi-luxury goods. The vast majority at least 95 per cent of the people who live here certainly can bear no heavier burden than is theirs to-day-indeed their relief is one of our major problems. And there is, wage- secondly, a large class of earners who are fully taxed already: many of them, who are compelled by the hard necessity of war to keep up two homes, can clearly stand no further taxation, direct or indirect. Where above them in the social scale a taxable margin begins to appear is a question for close and expert in- quiry; but, unquestionably, at the upper end there are some relatively few it may be, but from the Treasury view-point far from inconsiderable- who are a long way from being taxed fully. Whatever their number or their nationality may be, if they are living here and have prospered here, safe under the British flag and sheltered by Great Britain's might, and if they can afford to pay more in taxes, their liability and obligation are plain: in this time of crisis they must share to the full the burden now being borne by the people of Great Britain, who are, as the saying is, already "paying till it hurts."
Those seeming irreconcilables have, somehow, to be woven into a consistent and positive policy by the Economic War Effort Committee. They
saved may have some daylight for us; but it looks as though they will have to keep their own lamps burning late into the night before they find all the right
answers.
Threefold Object
The objects to be served by deny- ing ourselves everything that is not necessary for the healthy maintenance of body and soul are threefold:
(i) Every ton of shipping space
saved is a ton given to our fighting men and to the people who are bearing the real brunt of this war.
(ii) Every hour of labour switched from the manufacture of non- essentials to that of war-sup- plies means an earlier victory. (iii) Every pound sterling not spent on luxuries means a better gold dollar exchange for Great Britain-and that is
One last word on the best use to which we could put the pro- ceeds of increased taxation. The money which has been subscribed here by the public or which has been
To be continued.
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SOUTH CHINA MORNING POST
28th June, 1941.
END
voted by the Legislature has gone to serve the highly useful purpose of helping Great Britain to pay her war bill, and His Majesty's Govern- ment has expressed a very sincere I trust gratitude on that account. that nothing that I say to-night will do harm to those voluntary Funds which are still open. But the new revenue which increased taxation would bring in calls for different treatment.
Production Value Regarded from the strictly economic point of view, the most immediately effective use to which it could be put would be to put it into production here in Hongkong; in other words to build ships—war vessels or freighters-and to produce equipment and munitions of war on the spot. By so doing not only would we help to pay Great Britain's war bill but we would also secure delivery of the goods at the same time. Every shipyard and factory at home is busy "to capacity" whereas here we have ample labour at our doors. The manufactures which our taxes, if spent here, would bring into being would go immediately to swell the stocks of war stores end equip- ment which His Majesty's Govern- ment needs for our sailors, soldiers and airmen. Lastly, the employment so given would help to keep the Colony going: and that is one of our prime imperial duties.
I suppose that not a few of my hearers will think this a very dis- agreeable talk, to say the least of it. Well! War is a very disagreeable thing at any time; but we are getting near to the end of the second year of this one and we are, or ought to be, beyond such minor considera- tions! so I will end where I began. The British Commonwealth is fighting with its back to the wall. What are we in Hongkong doing to help? All that is in our power, or not yet all? And if not all, are we going to hang back? I am convinced that Hongkong's answer to that is the
that Australia and Carada have given in the last few days: "We will withhold nothing that is within our power to give". Worldly wisdom alone would dictate that reply to us. I trust, however, that Hongkong will give it from a worthier motive. Let me state that motive in Mr Churchill's stirring words:
answer
"We have but ore aim and one single irrevocable purpose. We are resolved to destroy Hitler and every vestige of the Nazi regime. We shall fight him by land, we shall fight him by sea, we shall fight him in the air; until, with God's help, we will rid the earth of all those who have shadowed it and will liberate the enslaved peoples from his yoke. That is our policy and that our de- claration: that course we shall pursue -faithfully and to the end”.
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