CO129-597-2 Estimates 1949 1-3-1948 - 14-7-1949 — Page 262

53652/46

Code

262

OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

5

TO HONG KONG(91r A.Grantham

Sent 15th March, 1948. 22.00 hrs.

IMMEDIATE

No.357

Confidential

Your toldgram No.204

Anrd (7)

1940/45 Satimates.

I apte revaille dailoatau 6150 wdėlione on concarvative basis 204 expenditura Xi48.750,000 thun showing a small amplus. After deducting frog Revere $10 millions srzaepe volating to the current peaz, however, thors 12 & defidis on the year'e working of 88,750,000. I feel that this position calls for a review of the Colony's policy In pagard so revenue in view of the piepen: boom conditions (and their causes) and that the at should be to budget for large ausplusee, thus:

Reducing the pressure on loan funde

cresting substantial reserves against possible

leaner years

(c)

8

Chooking inflation

Reducing any demando on 8.1.4. at a time when lùa resources, particularly where overeens axponditure is concerned, are ao greatly strained.

2.

1

Accordingly and in view of the poor response with which I understand firet issue of tho 250 willion lean hao net and the small supplue enviosyed next year even after allowing for 810 m. arrears of revenus from current year. [ consider all possible measures to increase revenues still further including the ralelas the present rate of the Barnings and Profits taz should be examined forthwith. In particular it okeno desirable if possible to tax funds. such as refugee capitel which has hitherto escaped.

5.

4

I should be glad to learn as Boom na possible What etape you consider can be taken with the above end 11a view.

L.

Is reviend reramue estimate current year 8147 m. efter allowing for Z10 w. appeara carplad forward to next year or is actual cash revenue estimated at #137 m.

6+

IX

What is revised estimatod expenditure current yeaY.

Grateful for further information regarding

2.1.1. profits.

Copien sent to:-

Treasury

- Mr. D.R.Serpell.