CO129-623-8 Estimates of Expenditure- includes a report for the year ending March 1951 1-12-1949 - 31-3-1951 — Page 77

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terms of the financial settlement recently reached in London asked for an undertaking that no further taxation, other than that already contemplated, would be imposed this year and you agreed that the official majority should not be used to force any such proposals through. The effect of the Hong Kong contribution of $16 million towards the cost of reinforcements is to produce a deficit on the Budget of just over $12 million. But, as has been pointed out, the estimates of revenue for the current year are conservative and, if exports of dutiable commodities are heavy and no drawbacks are claimed, this deficit or the greater part of it may be covered. So far, revenue collections have been satisfactory.

39.

I much regret the delay which has occurred this year in the submissi on of the estimates of revenue and expenditure. This is due to the visit of the Financial Secretary to London in April in connection with the financial settlement and his pre-occupation with this question since his return to Hong Kong.

I have the honour to be,

Sir,

Your most obedient, humble servant,

GOVERNOR.