CO129-597-2 Estimates 1949 1-3-1948 - 14-7-1949 — Page 189

[7713) Wt. 40552;714 50m 2/48 C.N.LQ 748

C. O.

Wallace

Mr.

2/9

Mr.

Paskin

Mr....

Mr.

Mr.

DRAFT.

I.P. BANCROFT, ESQ.,

TREASURY.

53652/48.

189

C. D. R. -3 SEP

D.

of

Permt. U.S. of S.

Parly. U.S. S.

Minister of State

Secretary of State

Your Reference........

194.

Ansel (22)

For Mr. Wallace's signature.

Dear Bancroft,

FURTHER ACTION.

Herewith a rather belated draft

of a despatch to Hong Kong following up

our telegraphic approval of the Estimates.

The attitude finally adopted

towards the Estimates and as regards

the desirability of further strengthening

the revenue structure in Hong Kong is

that expressed in our telegram No.751.

Our draft despatch is based on that

attitude read with the Governor's reply

to our telegram No. 751.

The separate despatch about the

Tai Lam Chung Reservoir project, to which

reference is made at the end of para.4

of the draft, is still under consideration

here. You were, I believe, in on

earlier discussions of this project which

took place while I was on leave and you

will of course be consulted about our

despatch when it is ready. (It seems to

me that the practical need to raise money

for projects of this kind is much more

likely to persuade Hong Kong's unofficials

of the desirability of increased taxation

than