C.O.
Mr.
Palmer 2/3
Draft
TELEGRAM /*
*
SAYINGRAM
*The word Priority may be entered here, if necessary.
To:-
Repeated to:-
GOVERNOR
HONG KONG.
File No.
245
53652/51
Sent, 2 Rex
2130 hours.
2/3 19157/
Mr. Gorell-Barnes 2/3
Mr. Hall 2/3
Mr. Sidebotham 1/4
Sir
Permt. U.S. of S.
Parly. U.S. of S.
S. of S.
* Priority:
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Important.Immediate
XMENGADIOX
XMDXEKONONIME
30
RECEIVED
3- MAR 1951
In Tel. C.D.
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Wt. 23588/882 50m 9.49 Wa. & Co. 51/3
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Your telegram No. 206.
No.
313
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Sextetxx
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1951/52 Estimates.
BUDGETTED AS atter of
I note that a small surplus is to be estimated/in
1951/52 and that a surplus of over $20 millions is now
expected in 1950/51 after charging off $50 millions
rehabilitation loan expenditure.
This outcome is most
satisfactory especially bearing in mind the effect of the
American embargo.
2. As regards 1951/52, in view of considerable time lag
which you expect before the full effects of the American
embargo are felt, and the expected surplus this year, it
appears that commercial activity may still be maintained
at a comparatively high level. In these circumstances it
would appear from the purely financial aspect that some
increase in taxation could have been borne without diffi-
infact,
culty, and would be desirable in order to assist in meeting
the cost of schemes of capital development, in addition to
J
the proposed development fund referred to in paragraph 7
of your telegram. Moreover, the amount of the Colony's
free reserves are still on the low side allowing e.g. for
the amount locked up on food purchases, rehabilitation
loar expenditure, etc. and might rapidly be exhausted in
the event of a serious trade recession.
3.
I fully appreciate, however, the difficulties to
which you refer in paragraph 9 of your telegram and agree
/that
No comments yet.
Private notes are available after approval.