7
Governor to consider submission of C.D... schemes, carries in its context a slight suggestion that we regard this as a means of helping to bridge the deficit. This, of course, is not at all what we want (see Mr. Marnham's minute of 24th April) and again I think the best suggestion here is that we should discuss with Mr. Follows when he 'comes whatever preliminary plans Hong Kong have yet been able to draw up on this subject. It may be desirable to give assistance to certain particular objects quickly (I believe for example that Mr. Herklots has been working on certain schemes), but apart from that I think Hong Kong's plans will be all the better if they wait until things have settled down a bit more before trying to finalise them.
7.582,
7.5.46.
I
I would go even further than Mr. J.B. Williams on the question of income tax. think we ought to make it quite clear that it is the Secretary of State's policy that Hong Kong should come into line with all other important Colonies and adopt a regular income tax, and that any temporary substitute should be really temporary. I have suggested, therefore, a revised version of paragraph 6(a).
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8.5.46.
7. Lord
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9.5.46
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