CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 97

be reviewed as to possible increasing of rates, rates

and new sources of revenue should be explored

such as some form of excess profits tax which,

in addition to being directed against profits

accumulated during the war, would also catch

excess profits in the future.

of the Colony itself to check inflation/should

he interest

gmoral scale of taxation

be raised as high as possible subject to local

conditions.

3*

ງ

Will

that 1941 rates of tax

gethe

no doubt

You should also consider in what way the

needs of the small investors might be met by

encouraging the use of Savings Banks and

woul

possibly by use of Savings Certificates.

$27 million

4. The special expenditure included in the

estimates should be financed from loan funds

rather than from current revenue assisted by

loans from H.M.G. It is possible that total all mounts provided in the estimates will not be

A

spent in 1946-7 owing to shortage of supplies.

Consideration should therefore be given to

estimating the amount required for special

which should expenditure in the next few years and if it 15

to be included under a Loan Ordinance authorising

the raising of a loan locally or in London

of loan in Londen may be expected to be about 224

and provided local terms did not exceed sa7-3%-p there would be advantages in power being taken

to raise the loan locally as well as in London.

In the meantime the question of the possibility

The of advances being made from Joint Colonial Fund

Force

to bRico, liquer & berpol are still in full a in view of prural. Juices there

nse

scene, an

onurchining mima Jacie case for

in cuase.

as

Terms

tames

to finance special expenditure pending the raising

Consulting hunt appropriate authorities a Wondatites of

The Loan No lint Schm mefer a local wan If the terms are

of a loan, is being taken up with the Crown Agents nut flest appreciatly

for the Colonies.

5. In view of assistance required from H.M.G.

Treasury control over Hong Kong finances is in

force. The precise form of control has not yet

been

en favorable man

Thire Manath in

Lowon