CO129-597-2 Estimates 1949 1-3-1948 - 14-7-1949 — Page 13

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4. Mr. Bancroft is very keen on our consulting the Board of Inland Revenue to see if they have any bright ideas as to how the surplus money in Hong Kong could be taxed. I am sure that consultation between officials of the Colonial Office and the B. I. R. on this subject would be quite useless · theoretical discussion at its worst. It might however be useful if Mr. Follows were to consult the B. I. R. and this is a point mentioned in the despatch.

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5. Paragraph 8 of the draft has been added since my discussion with Mr. Bourdillon. The position regarding the claim for $2,000,000 against the War Office is that we expect a letter from the War Office admitting liability, but querying the amount due (the claim is for railway stores shipped to the Middle East in the early years of the war). I think we should "show willing" about these claims in this despatch.

6. The passage about lotteries in Malta and Gibraltar has been agreed with Mediterranean Department (Miss Fisher) and the passage about non- disallowance of the Appropriation Ordinance with Mr. McPetrie.

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