CO129-597-2 Estimates 1949 1-3-1948 - 14-7-1949 — Page 184

185

That in Malta hen

in 4istence for many years. That in fibrother was sanctioned last year in the partner Gru that the inhabitants of the Colony participated the Grey. largely

in Cotteries

border in

Spain and that it was

Considered more divisable that the

Colony shall banggit from this activity

goreign

Man a

Comstry.

agree to the adoption of this expedient

in present circumstances and promised to

1

give my reasons for this decision. White It

is true that state lotteries are at present

in operation in Malta and Gibraltar. I do not

Lotteries.

regard them generally as a desirable expedient

because they are an uncertain source of

revenue and their introduction tends to

encourage local populations in the belief

that their financial problems have been solved

without recourse to more realistic and drastic

.10. measures; moreover

even though the state

I ar

may take tribute from gambling activities in

such forms as a betting tax, this does not

involve, as a state lottery does, the

organi ation of gambling by the state.

therefore averse from sanctioning the

establishment of state lotteries except in

special circumstances or where it is established that no alternative method of raising/revenue

necessary

exists.

6.

It seems likely that in Hong Kong the

most effective way of substantially increasing

revenue is by raising the rate of Earnings

and Profits tax and, while I appreciate the

reasons why such a measure is not feasible

at present, it has not been suggested that

these reasons constitute a permanent objection

to such a measure.

74. It was suggested in the course of

discussions with the Financial Secretary

that