12
на
to agree that the cost of repatriation passages should be met by H. M. G. and not by the Colonial Governments.
6.
The present balancing of the budget is extremely precarious, and obviously the need for increasing revenue must be very much to the fore in Hong Kong. I think we must agree that they have already taken appreciable steps in this direction, including in particular the introduction of a form of income tax. They must be so well aware of the necessity for increasing revenue that I think it would, frankly, be rather banal for us to ask them simply to consider the need for raising additional revenue. I would prefer to put it in the form that the need for raising additional revenue is an obvious one, and we assume that Hong Kong will keep under constant examination all possible measures designed to achieve this end, including the possibility of increasing the standard rate of taxation under the new Earnings and Profits tax.
7. I agree that we should approve the provision made for $250,000 to be placed at the disposal of the Committee to be appointed to administer the War Memorial Fund. We shall obviously need to consult the Treasury before signifying non-disallowance of this Ordinance, (it is
registered on 54384/5/47 below), and I think that our letter to the Treasury should enclose a copy of the Ordinance, saying that subject to any comments they may have, we propose to signify non-disallowance.
8.
The only other point on which I wish to comment is to note that, when Sir M. Young recently came to the Colonial Office, he seemed rather surprised to learn that the Treasury will still exercise general control over Hong Kong's finances, since Hong Kong's budget is "balanced" and the Colony is not at the moment actually in receipt of any loan or grant-in-aid from H.M.G. We made it clear to Sir M. Young that Hong Kong's finances must continue to be subject to general Treasury control for the time being. I am not sure to what extent, if at all, Mr. MacDougall and the authorities in Hong Kong may be under the same impression as was Sir M. Young, but I think that, to avoid any possible misunderstanding, it would be as well for us to make the position quite clear to Mr. MacDougall as in draft semi-official letter opposite.
9.
So far as the letter to the Treasury is concerned, I think we should say that, subject to any comments they may have, we propose approving the estimates with appropriate comments as in paragraphs 4 and 6 above; that we might refer the Treasury to the correspondence mentioned in paragraph above; and make the point in paragraph 3 above.
AnGalsworny
11.7.47.
Image Convin
سمة
No comments yet.
Private notes are available after approval.