CO129-594-5 Financial Policy Directive 21-2-1945 - 6-10-1945 — Page 9

C.O.

LETTER

SENT

DRAFT

MR. Wodeman

MR.

MR.

DRAFT AND RECORD COPY

REGISTERED No.

54152/45.

Dear Smailes,

M

DATE.

Downing Street,

S.W.1.

OCT 1945

9

ENCLOSURES

8 copies of

Financial Policy

directive, llong Kong.

FURTHER ACTION

I enclose for favour of transmission to C.C.A.0. (Hong Kong), 4 copies of the Hong Kong Financial Policy directive which was approved by the Secretary of • State for the Colonies on the 22nd September, 1945.

I also enclose two copies for the information of

Brigadier Macaskie, (Borneo) and two copies for retention by C.A.4. if required.

Yours sincerely,

(SOD.) G.S. WODEMAN.

To

(11/44) [3693] Wt. 43090/394 50m. 12/44 C.N.Ld. 748

Page

Page

SECRET

age 10

10

HONG KONG

CIVIL AFFAIRS POLICY DIRECTIVES

FINANCIAL POLICY

In general, as and when conditions permit, revenue should be collected in accordance with the legislation in force

on December 24th, 1941. In due course consideration should be

given to the introduction of a general income tax.

'.

2. Hong Kong should remain a free port, and import duties should be confined, as in the past, to alcoholic liquors, motor

spirit and tobacco.

3.

1

It may be assumed that some measure of Imperial

Preference will be preserved. Pre-war preferences should, therefore, be maintained, unless and until varied at the direction

of His Majesty's Government.

40 Minor modifications in respect of licence fees made by the Japanese may be accepted at the discretion of the General

Officer Commanding,

5. The Government opium monopoly is not to be restored. 6. As soon as the situation permits Budgetary Control and estimates of revenue and expenditure should be re-established in

accordance with Colonial regulations.

Valid pre-occupation claims against the Government should

be met as and when they can be verified.

1

8

Special arrangements should be made to examine and deal

with claims on account of war damage.

9. The future currency and the treatment of Japanese issues

are dealt with in a separate directive.

Colonial office,

22nd September, 1945.

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