CO129-597-1 Estimates 1948 15-11-1946 - 12-6-1948 — Page 34

At the same time large items of expenditure,

estimated to amount to $100 millions by

31st March, 1948, remain charged to Suspense

the recept of pending the raising of a loan, or to/further

assistance from H.M.G. which formed the

No. 292 subject of your despatch referred to abozo.

544357

In these circumstances, whilst the probable

financial outturn for the year is gratifying

and more favourable than was originally

estimated, you will doubtless keep under

examination all possible measures designed to

increase revenue including the poasumikitý

increasing the standard rate of taxation

under the Earnings and Profits tax, so that

revenue may suffice, not only to meet the

inevitable increase in certain items of the

Colony's expenditure such as salaries, but

also a certain amount of the special expendi-

ture.

3. It is observed that provision is made

under Head 20 Item 26 for $1,500,000 for an

initial grant to the Municipality, but it

not

does now appear that any expenditure will be

incurred from this provision in view of the

delay which has occurred in setting up the

Municipality.

4. In my savingram No.935 of the 12th

to which I have not yet received a reply, December, 1947,)I referred to a certain part

of the provision under Item 14 20 of the

Schedule of Rehabilitation expenditure in

respect of the Tai Lam Chung Valley Scheme

appearing to be more appropriate for a

Colonial Development and Welfare Scheme; and

I should be grateful if you would examine also

other items in the Schedule from this point

of view, in order that appropriate schemes

Is

as I have already

pouted

our

my felegram No...

Moreover,

The Colony

is experiencing great commercial prosperity,

mcrease in

aum

toux ation can be bome without hardship Considerable surplures

should thus be budgetted

پیکر

can be

order

that babilities

otherwyer chargeable to toan funds From revenne

this avoiding post fonemnet. in meeting the liabilities until

A

time

Colony may

when the

be in

a

less prosperous state,

leutel the habilites

Cure

met, the bolany will not

the able

16

rexe we

buld

ир

against

Cas

any prosperes times! me

should be glad to Scann what steps from can be taken

reveure

Consider

و

to mcrense

with this end in crew (54145/4/47)

(13)

may