CO129-594-5 Financial Policy Directive 21-2-1945 - 6-10-1945 — Page 3

be changed to the "Wan

in force in 194)". Since

cut only

Tax act

msfits but also

игро

Miał

Revenne lepitation

сери

Regulation

Salaries & business

internt and properly.

3

Mr. Wodeman

.

هستند

1/3

Our comments on the attached financial directive are as follows:-

(1) Since I understand from the last sentence of your minute to Mr. Emanuel of 28th February that the directive is intended to represent C.0. long term policy, I agree with Mr. Emanuel that it would be desirable for us to say definitely in the directive whether or not it is our intention that income tax should be introduced in Hong Kong. I think that,if Mr. Caine were here to advise, he would certainly suggest that we should say that it was our intention to introduce income tax as soon as this can be done. Perhaps this point could be considered.

(2) I am not quite clear how paragraphs 3 and 4 of the directive square up. The former says that Hong Kong should remain a free port and import duties be confined to alcoholic liquors, motor spirit and tobacco, while the latter states that it may be assumed that some measure of Imperial Preference will be preserved. If the two paragraphs read together merely mean that Imperial Preference should be preserved on alcoholic liquors, motor spirit and tobacco, would it not be simpler merely to merge the two paragraphs into one saying this? and indah a statemus is that effect.

(3) I agree with the comment in the last paragraph of Mr. Emanuel's minute of 1st March, although the point is not one of importance.

by his file and 54151/45 amel in Registry today. I have informed

Mr. Wodenan

231345

M. Mac Dougall

For your comment please

7.-8W.

1.3.45.