CO129-597-3 Estimates 1950 22-2-1949 - 3-11-1950 — Page 266

OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

262

26

53652/49

Code

TO HONG KONG (Sir A. Grantham)

Sent 12th March, 1949:

17.45 hrs,

IMPORTANT

No. 285 Confidential

Your telegrama Nos. 175 and 174.

1949/50 Betimates,

I am very grateful for this useful cumanary proposele and have the following commenta-

2.

you

I note that H. R. P. 'e grant c 16,000,000 vild be included in the revelle, Local revenus is thus catinsted ac % 164,000,000 compared with $ 17,000,000 estimated for whe current year (see your savingrem No. 47). Iv esons popaible therefore that the estimate of 164,000,000 is a conservative one and that a surplus may in fact be achieved in 1969/50 especially is the proposale in paragraph 10 of pour te lagerm No. 173 are approved,

3.

Nevertheless the desirability of redoing prevare on loen funds, of creating substantial recurves against possible leaner yours and of checking antiation, all of which I gbroesc& In my telegram Nɔ, 387 of 1942, still hold good po PERAQAA TOK increaslag texation, In particuler the desires.11ty w checking inflation is even greater now than last year xn view of the recent ubevential influx of wealthy refugees.

Whilst therefore I appreciate your difficulties in perbanding non-officiels of greator desirability of inoreesSÚ taxation the proposal for this in your peregraphe 6 and 10 aro in fact very modest In view of much larger anoreɛger in recurrent exponäiture and against background of continuing commercial prosperity of Hong Kong, Tax Abeoseop aleff pondslun hat, I understand, considereoly improved during the last year end I ahould be glad to learn whether in view.cf this you com ader thet some increase in the atenderd rate of Earnings and Prodiin Tex is feasible.

fa regarde peragraph 5 of your talepram pee my

telegram No. 253 of the 3rd March.