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reason to believe that on this compromise proposal Government would receive the support of two unofficials.
5.
If the proposal to increase the rate to 15% were proceeded with opposition would almost certainly be unanimous. We are being criticised for proposing an increase in direct taxation at all when we have been promising constitutional reform. We have been accused of delaying this reform and taking advantage of the delay in the creation of an Unofficial majority to force such a measure through. Moreover there are signs of a campaign (not in very responsible quarters) to get rid of expatriate officers as it is alleged that the deficit could easily be wiped out by heavy cuts in passages and expatriation pay.
6. I therefore consider that it would be most impolitic to steam roll the original proposal through with the official majority while there is a reasonable chance of a small degree of unofficial support for the compromise proposal. There 13 the further consideration that a very early decision on the new rate is necessary as forms indicating the new rate of property tax must be sent out in May. The amending Bill must therefore be introduced within the next few weeks. If the Opposition were determined and unanimous, as it almost certainly would be, such a measure could be delayed by various manoeuvres until it was too late for the new rate to become applicable this year.
7.
I trust therefore that in all circumstances, you will agree to my compromise proposal. In winding up debate on second reading of Appropriation Bill Financial Secretary is indicating that Government is determined to raise the additional revenue of $12 million and that we will make provision for this in final print of Estimates. He is hinting that we will proceed with Business Registration Tax plus a compromise on standard rate but is not committing himself completely.
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TENDO Y FONALDO
Col. Russell Edmunds.
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