Code
(51
~47 file
Copy. Ongl. 53652/48)
INWARD TELEGRAM
TO THE SECRETARY OF STATE FOR THE COLONIES
Croteas'A
FROM HONG KONG (Sir A. Grantham)
bas Iestadost sasuLNO OS: cuonto(D. 14th July, 1948, a zetuzĒLU 791
vay R.: 14th To Lave or 11 15 hrs.
je osudibreqxe pack soda bote te
toge Lavod ode to GUM
No.677 Confidential. Jode...
Your telegram No.751.
I note your approval of the estimates.
24
2. Revenue receipts for first three months of the current financial year total $38,861,212 against estimate for twelve months of $151,407,950, expenditure for the same period should not exceed $30,000,000. Out of estimate of $40,000,000 for earnings and profite tax, less than $5,000,000 have been collected, but. Puâney considers that estimate will be realised if staff difficulties can be surmounted. It therefore appears probable that the year's working should result in a moderate surplus, even allowing for payment of $5,000,000 for Kai-Tak resumption, as yet unexpended. This assessment of the position takes no account of certain debts outstanding to this Government since 1941, such as that of over $2,000,000 from the War Office referred to in Sir Mark Young's despatch No.80 of 10th April, 1947.
I shall address you shortly regarding similar debts due from Governments of India and Burma, and I trust that you will endeavour to secure settlement of these accounts during the present financial year.
3. Probable surplus for 1947-48 is in the neighbourhood of $50,000,000. Against this surplus will be charged total of items referred to in my confidential telegram No.467 reducing figure to approximately $30,000,000. I agree with your view that it would be desirable substantially to increase the surplus to provide for future commitments, but public opinion here is still extremely sensitive over the war expenditure settlement and the fact that budget surplus has to be used to meet war period liabilities was adversely commented on in unofficial speech on settlement. I have no doubt that there would therefore be violent opposition to any suggestion that surplus, depleted by charges which are still regarded rightly or wrongly as proper imperial commitments, should be reinstated by additional taxation. Moreover further texation of tobacco or of Chinese liquor would give rise to increased smuggling and I am of the opinion that my further increase in the duty on European liquor would show a diminishing return. Purchase tax, apart from the inherent difficulty of administration,
presents the more immediate and at the moment insuperable problem of staff and accommodation. It appears to me that a simple and acceptable means of raising additional funds would be by means of a state lottery, such as I understand is now carried on in Gibraltar and in Malta, and I should be grateful for an early indication of your views on this matter and of copy of Colonial Legislation and other information on the subject. I should favour tickets of a price which would be beyond the means of the working class.
い
4. The preliminary investigation mentioned in
paragraph 13 of my despatch No.100 has had to be suspended in consequence of staff difficulties, but some small reductions in menial and clerical staffs have been made. Unwelcome economies are being effected by the
/resignation
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