1939-11-16 — Page 28

Thursday,

HONGKONG TELEGRAPH

FORCEFUL ARGUMENTS AGAINST INCOME TAX

TO

UNANIMOUS OPPOSITION

GOVERNMENT'S PROPOSALS

Continued From Page I

The Hoti.. Mr. A. L. Shielda såld that whilst indications were not lack- ing that the Unofficial Membery of the Council were solidly against Income Tax, he believed that they would be as solidly in favour of raising a War contribution by other means,

The Committed of the General: Chamber of Commerce, he revealed, had proposed other forms of taxation which would produce about $5,200,000 la cover local defence and a con- tribution to the Home Government, He described Mr. Caino's speech iast Thursday as one of no com- promise.

"So many objections, have been made to lacomo Tax that I need not say more than that the ton. Financial Secretary: seems to be ploughing u rary lonely furrow. A perusal of all that has been said in this debate leaves one with the samo Impression as the proud Bother whose son had Joined the Army. She turned out! to! sco his Regiment on the mardi and was surprised to find that they were all out of step with her Peter,"

Mr. Pearco's Viowa The Hon. Mr. T. E. Pearce said that he could not interpret in the recom- mendallons of the Secretary of State that the Colony had to provide for expenditure on a lavish scale for now

MR. LI TSE-FONG

should do its utmost to make contri-

butions to the war chest to the full extent of ils resources as a token of the Colony's loyalty to the Imperial Government. The Chinese Com munity are most grateful for the pro- tection and security afforded to them In this Colony and I feel that they will not hesitate to give their support to the Government in any financial messures other then Income Tax in connection with the war. The opposi- tion to the proposed imposition of In- come Tax as far as the Chinese are- toncerned, is not based on any poli (ical

grounds but is entirely for economic reasons.

I share the view which has been expressed both inside this Chamber outside that in view of the pecu- ltar economic structure of the Colony as an entrepot which is apt to be ad- versely affected by the war in Europe, the imposition of this form of taxation at the present juncture may infiel such damage to the vital interests of the Colony that it may not be able for a long time to regain its im portance.

HON, MR. A. L. SHIELDS

nasistance of on expert pre- ferably familiar with the col- Jection of the fax in an eastern country.

In modern countries where Indus- trial organisation is well advanced and the population is well educated cluding Secondary) Education is out and the standard of living is more or of proportion to its expenditure on less uniform, Income Tax, from the

(2) That it would be unwise, to Primary Education. Оп These point of view of equity and faculty,

impose a tax of this nature until a

substantial body of rounds it is recommended that the perhaps one of the best formis Government should assume as soon of taxation. But it is noteworthy

opinion in this Colony believes mittee Report of 5th April 1939

that the tax can be levied fairly and efficiently, as possible larger responsibilities into observe in the Taxation Com- Primary education and the best way

The Hon, Mr. Calne strcases the of doing this would be to build, as a that even in these modern countries

essant vigilance is necessary start, two or three large primary

evasion.". In Hongkong with point that because the exchange rate

To

and

November 16, 1939.

ANGLO-U.S. SHIP PLAN

Joint Services By Merchant Marines SPECIAL TO THE "TELEGRAPH" LONDON, Nov. 15, (UP). The Financial Editor of the "Evening Standard" states it is understood that United States' shipping concerns are suggest ing a plan to employ US, ships, affected by neutrality legislation in the South American trade, in place, of British ships which would thus be released for duties in other parts of the world.

"Such a plan has its dangers," the editor said. "It was partially ear ried into effect in the lost war and resulted in much British export trado permanently passing to the United States.”

Britain and the United States hope to capture the export markels in South America lost by the Germans and that the competition will be

t: keen.

Tribunal Case Adjourned

No Witnesses For Prosecution

As witnesses for the prosecution Bummons were not present, the against Robert Archibald Boyd of 34 Queen's Road East for failing to comply with an order to attend the Compulsory Service Tribunal on August 28, was again adjourned by Mr. R. A. D. Forrest at Central Magistracy to-day.

Inspector J. R McWalter said

It was also necessary to prove that notice had been served. pleaded that illness had prevented It may be remembered that Boyd

Hearing was adjourned to 2.90 p.m. his attending the Tribunal

on November 21, 20

Mir, Pearce saw no reason to alter it now the general accepted policy of the Colony, What I ask is that I have no actual figures avaliablo £20,000 Cheque For

"There is real danger that a method of taxation !!! adopted to the special position of Hongkong will destroy confidence and seriously damage delicate financial structure.

mako.

Mr. Li Tso-fong

of

Board Of Education's Position

JOHANNESBURG, Nov. 18 (Reu-

IN STREET

and expensive schomes during the schools in the City of Victoria, stata peculiar economic conditions and of the Hongkong dollar has been notice to attend the Tribunal was present abnormal state of affairs, them only with fully trained teachers,

On August 28 he had failed to appear. shared by my colleagues, that this them at to serve as models for schools tion, the tasks on the part of the the highest limit permitted under Defendant had been passed as medie. "I hold a strong view, not fully inspect them properly and thus make its peculiar composition of popula-stable for the last few weeks at about served on defendant on August 21. Budget, coming at a time when the conducted by private enterprises. Administration to carry into effect the stabilization scheme, there has

To Mr. Forrest Inspector MeWalter situation to obscure, should have These new schools should be free, an such "incessant vigilance" may prove been no substantial outward move-ally fit on August 21.

ment of capital. It is well known said he could prove that Boyd had been framed to show a large surplus innovation which would not be very to be formidable and costly.

Effects Of War

that the exchange rate of the Hong been passed medically at through the which, if realised, could have been costly since any fees charged could held in a special reserve, and utilized only be small"

The impact of the war in Europe is kong dollar is subject to Buctuation doctor's certificate. Mr. Forrest point- at soms more suitable time for the

not enumerate, and do not think various projects referred to by the

Some of the schools conducted by beginning to tell on a large section caused by many factors which I needed out that that was not sufficient

of the Colony's manufacturing indus Unometal Sentor Member."

privato enterprises, I must say, are tries such as cotton goods, shirts and that it can be taken as any evidence and that the Doctor had to appear. | The Hon. Mr. Pearce referred dne institutions but the general con- singlets, rubber wares and shoes, indicating the movement of capital. In this connection 1 need only point sceptically to ARP. in Hongkong,ditions of many others are far from commetles and electric torches out that the exchange rate of our and doubted whether the Colony was satisfactory. The Community are batteries, mainly due to increasing getting full value for its money. predominantly Chinese, and as tax-

The Colony, he said, was fully payers they have the right to expect cost of imported raw materials and dollar in terms of the Chinese dollar transport. Any further encumbrance has depreciated quite substantially justifled in demanding that the quee that Government should assume full which a new impost such as income since the 12th October, tion of Civil Service pensions be responsibilities in the primary educa- Tax may impose upon those Indua-

Colony Lases Money tackled immediately.

tion of their children. I submit that tries may compel them to move out his views regarding Income Tax after of all modern nations to provide

Red Cross Fund scrutiny of

Financial least the primary education necessary the Government should not make it but I have reason to belleve that close

for overy citizen as a comunun bencat more difficult for these industries to since Income Tax was mooted, the. amount of Chinese currency notes Secretary's speech,

To my mind Income Tax la un. and to make. it free to all the carry on if it can possibly help it.

In the matter of Exchange Control that have been shipped out of the mited to the peculiar conditions of recipients.

the Government has recognised this Colony has been on the average of ter)Mr. A. F. Waterson, High Com- Hongkong.

Colony's peculior position and was about a million dollars a day which missioner for South Africa, has pre- This leads moto à consideration of quite right in applying special treat constitutes a heavy inroad on the sented the Lord Mayor of London In with a cheque for £20,000 for his It was ment to solve that problem. It is avating capital of the Colony. the Board of Education.

The South African Red Cross, which established in 1920 "for the purpose therefore logical that on the question addition there is that invisibio flight Red Cross Fund, of assisting the Director of Education of taxation, we are entitled to similar of capital through transactions in

gave the money, desires it to be used in sterling operated between here and considerations bearing in matlers pertaining to the develop special

for the purchase of four motor ambu- ment and Improvement of education mind that any form of taxation other financial centres.

The Honourable the Financial Solances to be named after the provinces in Colony," and has since then which would tend to drive capital

of arguments advanced Natal and the Orange Free State. The Hon. Mr. Li Tso-fong said: remained as a purely advisory body, and industries away from this Colony Cretary was somewhat caustic in his of Transvaal, Cape of Good Hope,

Burma Gift Your Excellency,--As I am a com-It is an important body, and I feci should be avoided as far as possible. criticism

this that it is time that the constitution At the present stage when full de-against the imposition of Income Tax,

LONDON, Nov. 15 (Reuter),—It paratively new member

was unnounced here to-day that one Council I have a few observations to of the Board should be reviewed and talls of the proposed Income Tax are because of une cuiculties of comuns Its function extended. A desirable not yet available to the Public, Itration, and he saw it to set bis

of the northern Shan states of Burma Chinese unofficial has given £10,000 to the Lord I agree with the Government's feature of any new change would be would only add that Income Tax, knowledge against that of the Hou- policy that there should-be-ns little the institution of several select com- being in reality not a simple Tax ourable Senior

on similar linës as the but a complex system of taxation, is member as to how Chinese accounts Mayor's Red Cross Fund. the mitices, disturbance as possible with

Urban Council for the purpose of not a desirable form of taxation for are kept. I am sure that my Senior Chinese Colleague did not intend to Colony's current activities and

with various educational this Colony, development schemes, and I venture dealing

There have been many proposals weave a net of mystery about Chin- VISITOR ROBBED to think that the provisions made for activities such as registration of public works extraordinary are by no private schools, awarding of Govern- put before the Government as alter-ese accounting as if he were trying

it in that way. It is

is funda- arka nicht scholarships and recommenda-native methods for raising the neces- to defend it works All moans extravagant.

sary revenue for the war budget. I mentally different in a manner that provided for in the estimates for the tons of grants to aided schools,

realise that some of these proposals it is not easy to describe. Those, who development of health and education,

In the matter of expenditure under would place the main burden of the have occasionally to construe it, as that would confer common benefit to Air Raid Precaution I wish to draw additional taxelion on some particul- for instance in the courts of law or the community, should be proceeded the attention of Government to the sections of the community, but as in bankruptcy, know how dificult it with without any avoidable delay total lack of provision for shelters war measures a certain degree of is to reconcile it with modern ac- earnestly hope that in the event of for civilians who may be out in the inequality in unavoidable.

counting methods. Government boing called upon to cut open in time of emergency, I realise

Should Use Surplus

Thero is one aspect with which the down expenditure in order to balance the peculiar formations of this Colony

I hope that the Honourable the Honourable the Financial Secretary the Budget, this should not be done that make it almost impossible to Financial Secretary will agree with has not dealt adequately and which at the expense of Health and Educa-provide shelter for everyone, but I

me that the financial position of the should bo weighed strongly against tion,

venture to think that it may be

Colony is not at all precarious but Income Tax na a temporary war Education Criticised

possible at a small cost to build a number of small underground shelters is, in fact, quile sound. The Colony's measure, I refer to the matter of As Income Tax is in #Although the pracent is

nor or in the alternative to strengthen surplus at the end of 1939 would organisation. opportune for no lo advocate larger come of the public buildings in the probably be more than what is bud-reality a complex system of taxatlon,

getted for in, the revised estimate the organisation of the new adminis appropriation for the extension of City to provide, for Buch ari

when we take into account the fact trative forces for its collection will These essential services, I tool that in eventuality." the matter of education I must call I will now come to the considera- that duties on petrol and liquors have require a good rienl of time and the Government's attention to the lack of tion of the proposed imposition of been doubled and the increased as normal revenue-yielding puwar will provision for the-building of model Income Tax. I bave had the op sessment came into effect on the 2nd only be reached meny months or

perhaps yours after its enactinent death occurred here to-day of Mr. of the year. In my hum Vernacular primary schools as recom- portunity of studying the speech made ble opinion mended by Mr. Buray in his Report by the Honourable the Financial

Government fall By the time the new machinery Murray Guggenheim, aged 81, Anan- Issued on May 27, 1939. In urging Secretary on the 9th November, but i lo raise the necessary amount of re-la in work for order the way, have cler and member of the famous cóp- ! Government to give this matter tha I can see no reason to change my

per family. venu for the requirements of the ended or be near its end. The more war budget by means of taxation I think of this aspect of the question, careful consideration, I will quote the opinion. I shall therefore confine to other than Income Tax, the Govern- the more I fall to understand why following pasage from the port on what I intended to say on that day ment could fall back on the Colony's Government should choose Income regard to primary vernacular educa- and refer to his speech again at the surplus which, at $13,562,235.00 as on Tax to finance the war budget. tion in the Colony:

It is a serious weakness in Hong-

1st January 1930, represents over 33% of the total ordinary revenue kong's educational system with result

With reference to Mr. Caine's ob for the whole

ropperd The above, Sir, ervation that Chinese members

bave year. which the primary foundations pro I wish to say that the Chinese Com- to say, not the budget debate have made no specific suggestions for Tald should be of so poor a quality.munity, whose views my Chinese ber As, by the rules of debate, fald point out that in his speech the been postponed, on the 9th Novem- alternative taxes I would like to This is the more regrettable when it colleagues and I have the honour to is remembered that for many children represent, are not unconscious of the down by Your Excellency many of Honourable Senfor Unofficial Member education ends at the primary stage. duty of all citizens in this Colony in the previous unofficial members, in-made it quite clear that he was In fact it is evident that the clovern connection with the present, war, including my two Chinese colleagues, speaking with the unanimous support debarred from answering the of all the Unofficial Membors 'when ment's expenditure on Hiption (t-Europe. They realise that the Colony speech of the Honourable the Finan- he asked Government for the appoint- clat Secretary made on that day I ment of a committee to consider and I must add a few romarks in reply to make recommendations for sultable

that speech.

alternatives. Chinese Colleagues Brilliant Debating Effort and I have therefore decided not to No one who has listened to or make separate suggestions in that read the Financial Secretary's speech regard.

feit through the school career of many

and.

How Chinelo Fool Before I offer my personal abser

of the children that the school, in vations on this very important matter

THE

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of the 9th November could possibly. I will now close by paying a tri- fall to appreciate its brilliance as: 0/bute to the Honourable the Financial debating effort. But if I may say Secretary for the public spirit” and 30, his speech upon a close analysis, unselfish sentiment expressed in the is not convincing because it fails to final paragraph of his specchi. To dent adequately with the fundamen-moot hla laudable' wish I think that tal objection to the tax, namely, its Government

can

ockily devise, a effect on the Colony; and because it scheme whereby all Government ser-

Mr. C. P. Goandgirard, a visitor to Hongkong, was robbed of his gold ring valued at $20, a gold chain with knife attached, worth $300, and $55 In cash early yesterday morning. outside the European YM.CA., în Kowloon.

The victim has reported the theft to the police, stating that it occurred two and Gix between half past o'clock yesterday morning.

Copper Magnate

Dies At 81

SPECIAL TO 'THE "TELEGRAPH" NEW YORK, Nov. 15 (UP).---The

He was a noted philanthropist and a native of Philadelphia where he founded the local Guggenheim Dental Cilnic..

Wage Increase Ends Calcutta Strike

NEW DELHI, Nov. 10 (Reuter) The Indian Jute Mills' Association has agreed to increase the wages of workers by ten per cent.

On, Thursday, 8,000 workers (at) expected to do so to-morrow. expected to do so

More Uniforms Smuggling

Amsterdam, Nov. 15 (Iteuler), Two brothers were arrested in Kerk- rade to-day and accused of trying to purchase and smuggle Dutch 'un-) forms across the German froniler,

is devoted largely to an argument as vants whose salaries reach a certain New Rubber Quota to the absence or presence o

„ofed- figure should be subjected to a special

levy as a war contribution."⠀⠀

ministrative dimèallies.

The Honourable the Financial Government were to adopt such Secretary appears to have overloaked a scheme I feel sure the Pubile will very important observations of readily and cheerfully submit to the Taxation Committee which, some alternative taxes which while briefly summarised, are as follows: enabling us to make a substantial (1) That the possibility, of the suc-contribution to the Imperial Govern- cessful working of the tax ment, would not be injurious to the should first be the subject of a Colony as would be the Introdue detalled investigation with the tion of Income Tax.

LONDON, Nov. 35 (Reuter)The International Rubber Committee has Axed the quota for the first quarter of 1940 at 80 per contam

PARIS, Nov. 10, (Reuter)-Oracle Fields entertained British troops romewhere behind the lines last. -night::

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