CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 22

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No.42

I agree with Mr.Palmer. As regards paragraph 4 however, it will be noted that this makes no mention of taxes on liquor and tobacco which were specifically referred tɔ at X of 35. I think we should be justified

in drawing the Governor's attention to this and asking

for specific comments. As regards the Governor's

claim that the petrol tax in Hong Kong is one of the

highest in the Empire, no doubt Mr. Fox Strangways

can indicate whether, this can be confirmed.

-

Provided

the Governor is juod, then I agree with Mr.Palmer that the Governor's view will have to be accepted.

No.43

I very much agree with Mr.Palmer that the Hong Kong Government is to be congratulated in producing detailed printed estimates so promptly. They have at present produced not only printed estimates but a formal detailed memorandum on the estimates which seems to me to give pretty well all the information that we could hope for. From the table on page 48 of the memgrandum, it appears that expenditure will be

$400,000 more than was estimated in the

WOLE

despatch at No.38.

As regards the question of "approving" the estimates, I appreciate what Mr. Palmer says about the difficulties of any formal approval. Nevertheless, I am on the whole inclined to suggest that formal approval should be given. Without going into the constitutional matters or financial Colonial regulations I think it is clear that unless the estimates are approved no resgat exists for expenditure under them. It is no doubt the case that we have to accept what Hong Kong says very much on trust in the present exceptional circumstances, but that is a fact for which neither the Hong Kong Government nor the Secretary of State is responsible. Not to approve the estimates would therefore seem to me to leave the position rather too much in the air. Furthermore Nat after the obvious effort that the Hong Kong Government has made to put the estimates on as regular basis as is possible I feel it would be rather discouraging to the Government if the Secretary of State still refused to accept formal responsibility for finally sanctioning the estimates.

I do not, however, see any objection to approving them subject to the points (a,, (b) and (c) made by Mr.Palmer to which I would suggest adding that, despite the approval of the estimates, economies which can be made during the course of the year

in fact be made, i.e. that the mere fact that the estimates have been approved on the basis of intelligent guess work should not be taken advantage of circumstances permit reduced expenditure without an upsetting the policy which is represented by the expenditure. should I think go so far as suggest in this connection that all ex

Departments of the Hong Kong Government should be required, if they have not already been so required, to watch their expenditure from this point of view.

exp

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As regards special expenditure to be charged to loan, I think it is quite possible that in ordinary circumstances some of the items, details of which are given on pages 156 et seq of the estimates, might be

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