OUTWARD
TELEGRAM
(ORIGINAL
YAN REG ON 5412
54124/1/46)
54128/1/46
Code
233
Loar fille
1
IMMEDIATE No.600
TO HONG KONG (Sir M. Young)
FROM S, OF S., COLONTES.
Sent 29th July, 1946. 13.00 hrs.
My telegram No.554.
Hong Kong Estimates.
Questions now discussed with MacDougall and Treasury, The estimates despatch will doubtless give me a clearer picture of the financial position but the following comments should be of assistance to you in framing your financial policy to the end that reliance on assistance from H.M.G. should be of as short duration as possible.
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2. Recurrent expenditure is estimated at 890,000,000 and revenue at $52,000,000 (leaving a deficit this year of $38,000,000) but provided revenue is increased it is possible that the Colony should, apart from special expenditure, be approaching the position of a balanced budget in 1947-8, To this end it is desirable to increase revenuo to as great an
at as possible by such means as for example increasing
on tobacco and liquors and non-essential goods, on of property assessment and increasing rates of
ending introduction of a full Income Tax Ordinance taff can be made available. Other existing taxes viewed as to possible increasing of rates, and now
venue should be explored such as some form of e tax which, in addition to being directed against ulated during the war, would also catch excess e future. In the interest of the Colony itself lation general scale of taxation should be gh as possible subject to local conditions. ot 1941 ratos of tax on tobacco, liquor and
+ still in force and in view of general rise in e scems an overwhelming prima facie case for
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