CO129-598-3 Tai Lam Chung Reservoir Project 17-3-1949 - 7-10-1949 — Page 25

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

Copy & Reference

р.

OUTWARD TELEGRAM

FROM S. OF S., COLONIES

Oft.on 53652/49

Code

TO HONG KONG (Sir A. Grantham)

Sent 24th August 1949, 11.45 hrs.

No. 1135 Confidential

Your despatch No. 92 Confidential.

Estimates,

Very grateful for your clear exposition of situation and your indication of possible future loan requirements. I approve 1949-50 Estimates. Certain comments follow by mail as soon as possible.

2

Meanwhile though I realise the possible political difficulties - I am still by no means satisfied that some further increase in taxation is not both desirable and possible, I shall revert to this in my despatch. Apart from reasons already advanced in favour of increasing revenue and apart from likelihood of increasing liabilities with which Hong Kong may be faced, there is also the point that in considering whether they could facilitate access by a Colonial Government to the London market, H.M.0. must satisfy themselves that all local resources are being fully exploited.

Copies sent to:

Treasury

- Mr. R.B. Moberly

12

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