1939-11-10 — Page 16

PAGE “4-HONGKONG/DAILY BRESS,

EBIDAY, NOVEMBER 10, 1939.

RELIEF ASKED FOR CHINESE WAR (SUFFERERS

in those early days! The estimated people should be well cared for such protestion has always beenį sultable, means to give effect to the revenue for 1907 was-35,202,135.00, was common ground with all refused on the ground that such natural desiré of everyone to bear which apparently represented ; a parties in the State."

“companies)--though registered in his just burden for the common somewhat serious decline on the WIDESTEKAD HE. POVERTY. the Colony, are not entitled to cause, for it violates both of the previous year's revenue.. The fol- We are naturally; proud of the protection. In one -case- to my principles I have suggested. lowing quotation from Sir Matthew wonderful progrem which the Co-knowledge a company incorporated STRONG MEMORANDUM Nathan's address gives an interest-tony has made under. British Eule in Hongkong, which is ≈ “British .......... There can be no reasonable doubt ing historical background of the within the short space of a century, "Subject" as defined by the Regula=į that-views opposed to the introduc- Colony's revenue position, and con- And yet what is its position today? |tion, has properties in Canton, tion of income tax have been con- stitutės not an unworthy guide to Bulstantially a non-producing | Swatow and Toishan, which were | sistently held by many people in" us as to how the Colony's financial country, the Colony still depends] either-burned or lested, or both.the Colony for at least a quarter of dimculties should be met in times mainly on its being an entrepot I have discussed these points-a-century......... Moreover, the Chinese of adverse trade er economic up-for its continued prosperity. Though the lightness of Hongkong taxation epposition to this measure must be certainty:-

there are undoubtedly known rich and the relative burdens between well known to Government.

"Before going into the long people, and also people whose the British and Hongkong tax payer When the idea of an income tax array of figures which I have on riches are unknown, because con--not for the purpose. of finding was mooted in connection with the my notes. I think it will meet cealed, sheer poverty is general and Lexcuses for us, to try to get out 1914-1918 war the then Benior your wishes if I explain generally | widespread.

cheaply" but as showing that, in Chinese representative, on this

་ ་

how it is proposed to meet that 'On the question of prevalence of my submission, 'we should-approach- Council, the late Mr. Lau Chu Pak, decline. There are three methods poverty I need hardly dwell, for it the question of the Colony's con-wrote in to. Government a strong open to us. Either to raise fur-is a painful fact, well known to all tribution to England as a matter memorandum against it. My Senior ther loans, or to increase taxa-social workers. Only at the begin-of patriotic duty, freed from any colleague on this Council, on the tion, or to reduce. expenditure. Ining of this year the Honourable self-reproof that we have been too 10th November 1938, in anticipa- am strongly averse to raising the Director of Medical Services, in lightly taxed, and untroubled by tion of the appointment and report additional loans at the present his inauguralɛ address before the any comparisons made between of the Taxation Committee; "ex-- time........... I am.also averse to newly reconstituted Nutrition Com-Hongkong and elsewhere. I pressed himself strongly against it. increasing taxation. It has been mittee, pointed out that on account therefore approach the question in As a member of the Taxation pointed out to me that this of malnutrition, which is a con- this spirit.

Committee "which reported to Your colony is very lightly taxed, and comitant of poverty, more than one First, as to the amount of the Excellency on the 5th April, 1939, I by no means promise that I child out of every three died last contribution.

I myself sent in to the Committee shall not on some future occa-year before attaining the age of It must be appreciated that a a memorandum-- setting out in sion propose additional imposts, one year, as compared with one in gift to Great Britain of seven or detail my own. objections. Some but at a time like the present one twenty in England.

eight million dollars. as suggested of the grave doubts which are when trade is bad it does not seem We have no hospitals for 'child by the Hon. Financial Secretary widely felt as to the possibility of a suitable one at which' to add ren. Indeed, our hospital accom- can be only a gesture of the the successful administration of an to the burdens of traders, ......................

modation is utterly inadequate, and Colony's patriotism and of her income tax in the Colony were There remains a reduction of the overcrowding in the Chinese willingness to "do her bit" as a summarised in the. Taxation Cam- expenditure, and that is the hospitals Is, though inevitable, a part of the British Empire. That mittee's report, which include the method which it is proposed to standing disgrace. The problems sum represents only a few hours of following: adopt. We must cut our coat of compulsory education (and even the Imperial War Expenditure, and according to our cloth. It must of Government-provided primary nothing that the Colony can give necessarily be a simple garment education), and of juvenile deli- can be of any material financial but I hope when I come present-quency, are stil a long way from assistance to England. This being ly to try it on you, you will agree being solved. With thousands of so, I feel the less reluctant to dis- with me" that it is a fairly ser-deaths from tuberculosis we have cuss the quantum of the proposed viceable one in which the Colony as yet,not been able to find the gift. In relation to the Colony's need not feel ashamed to appear means to build a properly equipped capacity. next season. It is somewhat of saniterium. For lack of funds we A gift of $7,000,000.00 represents

"

-a tight At, but if we adhere to have not begún to tackle the 21.5% of the yearly average revenue the estimates we have framed problem of Slum-clearing. We for the past ten years of 324 mil- we shall remain in the same have no Old Age Pension, no Poor Ion. If to this amount we were to sound financial position at the Law. We have no Air, Protection add the special Defence expendi- end of 1907 as I am happy to say for the masses.

ture of 23 milion, and the Military

we shall be in at the end of 1906," Since Your Excellency's arrivai | Contribution of 6 million, the total As regards comparisons between | in the Colony you have spared no amount would come to $15,250,- Great Britain and - Hongkong I effort in providing and increasing |000.00, which is 46.9% of the yearly submit, Sir, that however flattering social amenities for the Colony in average of 324 million, . it may be to compare the Colony every direction possible, and the with the Mother Country, the | Colony owes Your Excellency a very greatest and wealthiest democratic heavy debt of gratitude. But the country in Europe, nie useful com- list of omissions is necessarily still parison between the two places formidable.

TOO MUCH

I- cannot help thinking that the gift is too much for the Colony, having regard, both to the Colony's position and to the Imperial needs from the point of view of fiscal As the "Bouth China Morning at the present time. I venture to incidence: can be fairly made. Post", in its leading article pub-think that for 1948, and until the having regard to the radical differ-lished on the 13th October, 1939. Colony's position becomes a little ences in government, institutions, pointed out:- economic resources and social con- ditions.

PATH OPEN "TO-ALL In England the amount spent since the commencement of this century QD Health, Education. Housing and Social Services-Un- employment Benefita, Poor Law Rellef, Old Age Pension, Industrial Insurances, etc-amounts" to -za- tronomical figures). From the při- mały school to the university; thence to the highest post in--the State, the path is open to the poorest lad with brains. Here is a -Den-picture of post-war Pagland by Professor H, A. Li Fisher, in his "History of Europe" (page 1210):

J.

43, The, migratory nature of the "Colony's population, and the extremely mixed taxable community, with greatly dif- fering standards of living. make Hongkong unsuited to the tax generally.

4. Many benefits are still to be derived from preserving the Colony as a haven for “IE- fugee" capital; The Colony's prosperity depends to a large extent on the fact that it is" the entrepot of China, a free port, without incozie tax and without excessive taxation. "An unwise fiscal imposition may well upset this precari- ous prosperity.”

"é. Economic and industrial de- velopment particularly of small factories as yet in their infancy-would be seriously affected."

two-

The Committee, whilst recom- niending the introduction of income more clarified, the gift to England tax in a certain eventuality if it "The upper ranks of the Gov- should not exceed $2,000,000. -

be considered that the tax is ernment Service are not open to As we are all agreed that the capable of successful administra--- the Hongkong citizen: he has no Colony should make the best con- tion in the Colony, felt it neces vote nor does he enjoy the full tribution of which it is capable, the sary to qualify this recommenda privileges of a British subject problem confronting this Council tion in five ways, specified in the his nationality is only stressed resolves itself to one of finding the report, from which L. merely quote for taxation purposes. The Col- best means of raising the money, ony is predominantly Chinese. It

Since the underlying. Ides is a has therefore a dual allegiance free and spontaneous gift by the. and a dual-commitment. These Colony to England, and not a tri- have emphasised themselves in bute to be exacted from an unwill- the Far East war that has been mg population, the following broad raging for two years a war principles should, in my opinion. which has profited some in the govern the choice of means:-- Colohy, but bled the majority through many economic wounds. No other part of the Empire has sumered this strain."

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SENSE OF INJUSTICE

"(a) The possibility of the c- cessful working of the tax

- should first be, the subject of a detalled investigation with the assistance of an expert, ..."preferably familiar with the collection of the tax in sa Eastern country,

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"(b) We feel that it would be unwise to impose a tax of

this nature until a substan- tial body of opinion in the Colony believes that the tax can be levied fairly and

• efficiently.”

(1). That, if possible, the means chosen should not, involve a violent departure from the Colony's fiscal policy, which has been in existence for nearly a century; and (2). That the.... means adopted should command is much popular approval as possible: at least it should not go Should some of the misgivings counter to deep-rooted and regarding this proposal, which are fundamental" objections of á indicated in the Taxation Came- substantial portion of the❘mittee's report, prove to be true, -community.

| then the Colony might well suffer

....

·UNPROPITIOUS

"At this time the British people bore without repining «s-burden In connection, with the above I of taxation heavier than that of feel it my duty to give expression any.

European.....corntry. The to the sense of injustice. felt by annual service of the debt charge į many of the.....companies incor- alone amounted to more than porated in Hongkong which carry 300 milion. sterling. Fifteen on business in Shanghal, Hankow years after the end of the war and other parts of China.: By the the State levied 43. §d. In the Defence. (Finance) Regulation 3B. pound on the income of the tax | Government has the right to payer irrespective of the supertax acquire-certain-foreign currencies Moreover, it seems to me that the | a setback from which it might take on incomes exceeding £2,000 a from every British subject (as amount of the gift should be suh-her a very long time to recover. year. Yet it is. characteristic of defined)" resident in the Colony,ordinated to the, means, avaliable. At all events it is difficult to ima- the democratic spirit which pre- and certain duties are imposed based on the above principles, cine a set of circumstances mare valled in the country that, despite upon such a British subject. By rather than that the means should unpropitions than that now ol bad trade and crushing taxation, this. Regulation, "British Bubject" be adopted in violation of those taining for trying out an extremely the level of the social services, includes every company incorpor principles for the sake of obtaining controversial fiscal experiment, higher than that which prevailed ated in the British Empire.. an arbitrarily decided amount with its dangerous potentialities.

in any other country and more During the Sipo¬Japanese.con-Accordingly I am bound to say that The Chinese in the Colony, who expensive, was not seriously filet companies of the class I have (I do not agree with the Govern- constitute some 97% of the popals- lowered. That the health, the mentioned, have sought profection |ment view that the imposition of tion, hare, for over two years, been - education, and the housing of the ❘ from the British Authorities, but izp income tax is by far the most going through a severe financiall

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