CO129-623-9 Estimates of Expenditure- includes a report for the year ending March 1952 1-2-1951 - 30-11-1951 — Page 49

Mr.S. Petherick

TELEGRAM

To:-

**

Draft

File No.

* SAVINGRAM

* The word Priority may be entered here, if necessary.

Repeated to:-

Mr. Hall 3/8

GOVERNOR

HONG KONG,

Waik not

logo

53652/51 48

Sent.

See

minute 18/8.

hours.

.194...

Mr. Dodd.

4/8

Mr. Palmer &

Sir

he

Dodd9/8 Stale 9/8

Permit fun

Parly. U.S. of S.

S. of S.

Priority :-

NILX

Rey xxgentX®¤μMKX.

IXẩm ddïnteXX

XMGMZInmedKX

To be transmitted:-

In Clear

Ccdr.c 113 Char

(”ཐིག་འབ “ཆ་འི

$14

Defence Aght pp 165

Distribution:

Further action :—

(9)

beswiss shirt en prom in on holid

this inting thath

wath on firmie Fighte

Hp.

m 9.49 Wa. & Co. 51/3

]

Your despatch 48 Confidential.

Estimates 1951/52.

No.

REAZIXKAX

Confidential. XXXXXX XXXXXXXXX XXKPEISDEXX

I am grateful for your detailed comments on the

financial position in Hong Kong. I note that although

the position is at the moment regarded as satisfactory

there may be a short fall under some revenue heads and

further expenditure is likely to be necessary in view of

the present disturbed situation in the Far East. I

appreciate that security expenditure remains at a high

level and that a supplementary vote will become necessary

if the tentative figure of $82 million included in respect

of the contribution in connection with the emergency is

increased to the same figure as for 1950/51, but this

question will be the subject of separate correspondence."

2.

It is I think clear that the amount of the

Colony's free reserves are stil

still low in view of the

need to build up reserves to finance future development

Therefore

and to meet other unforeseen expenditure.I was surprised Somewhat concerned

intha

what

to see that two Unofficial Members had urged that not

1

only should the business registration tax be deferred but

that the standard rate of tax should be reduced to its

former level of 10%. I shall be addressing you separate-

ths of tax personal means for vales ly about this question as I am concerned about the

X

relatively low rates of income tax in the col

/especially