Thursday,
HONGKONG TELEGRAPH. February 20, 1941.
UNOFFICIAL MEMBERS DEBATE HONGKONG'S FINANCIAL ESTIMATES FOR COMING YEAR
MR LI TSE-FONG WANTS TO SEE COLONY'S BIG FINANCIAL RESERVES USED FOR THE WAR EFFORT
An important feature of the Hon. Mr Li Tse-fong's speech was his reference
to the big financial reserves which Hongkong now boasted and his suggestion that, now was the time to make use of them..
He suggested that a portion of the reserves
PETROL
might be set aside for the cost of the proposed building of two ships to be presented RATIONING
to the Admiralty, and the remainder to be used for carrying on defensive works in the Colony.
The Hon. Mr Li Tse-fong also covered other general matters, including war taxation, night soil, education, and the Immigration Department.
The Hon. Mr Li The-fong said:
Your Excellency--The Hon. Financial Secretary in his speech on January 16, 1941, reviewing the financial poi tion of the Colony, stressed the point that although the anticipates
the end of the
this Surplus
revised
estimate
of $17,213 670 .A yene largely a
The Financial Secretary explained that out of this surplus af $17,000,000, a saim of $5,790 con
the 1934-llar -kaun.
invested tz
"white by the end of net ver total of over $1,000,000 will have been advanced in antigten né à Future
Granting that this statement i correct, it does not after the fast End the estimated surplus of the Colmay assets over its Hibilities, at 1 ud of March 1941 will be well over 517- 000,000 although it, may not entirely of cash.
1
CILE
Strong Financial Position According to the fontinal taqo men jablished by Government on February 5, 1941, the Colony lad surplus at the end of tea, MEN was one than -$21,000,000 of which a stan of over $18,000,000 was chasse; fed as each and advances. This ve presents
(1)
Hon. Mr Li Tse-Fong
very high ratio in relation under
from Ordinance. to the amount of revenue ordinary sources.
the
Tuis
WARNING
Resolutions Moved Moving resolutions giving
A A member of the Board of effect to the new duties on petrol, Pluation 4 demly believe that in heavy oils, table waters and
educational
ul systein
liquor, the Ion Financial Secre- Calong it is Chinese primary educa-
on urgently needs develop.tary, Mr H. R. Butters said, at 1ae present time the deve-the meeting of the Legislative lopment of Chinese primary education Council this morning:
ment.
feti almed entirely in the hands Sir rise to move the resolution of private enterprises and I do, not standing in my name. Hopite that a satisfactory system can The duty on light oils, that is on ben hieved without Government petrol, was increased, by His Excel- taking a leading part in its develop-lency's order, to 10 cents per gallon tent. I wish, therefore lo
urgeon November 1, 1949. The object of Government that s
as the the increase in petrol duty is, by re- finnaeial position permits, it should ducing
to consumption,
conserve Irnered with the programe for the foreign exchange and save tankerage Lifevelopment of Chinese primary it is not intended as a revenue
pro edusition.
ducing meastire,
Not Extravagant
I am authorised by His Excellency! The programme has been carefully to state for the information of Hon. rum-dered by the Board of Eduention Members and af
of a warning to the prat submitted to Government by the public that if this measure falls in its Dnector of Education with the full primary object, namely, to reduce and unanimous support of its mem-consumption particularly in respect best I vrature to think that this of private cars, the rationing of petrol repramune is not an extravagant one may have to be introduced. and does not call for heavy expendi ture which will be spread over al number of years.
Duty On Oils
The increase in the duty on heavy 1 consider that, of all expenditures oils to be used as fuel for heavy of on road vehleles from 30 to 40 cents per Jun social services, expenditure
Chinese primary education should gallon and the Imposition of a duty deserve
first consideration. If
Kullon we of 10 cents per
on other oils hitherto untaxed. were able to prevent, by providing hydrocarbon
both graper education, a large number of with effect.
cases from War young people from falling into the January 16, 1841, are, as indicated in feriminal class, it would relieve this my speech to this council on that day,
Colony from other heavy burdens revenue producing measures. such as an increased Police force.
Emergency Step With regard
To inerne the existing rates Revenue the present War (2) To amend the present If this Colony were a corporation Revenue Ordinance. I would certainly congratulate these
charge of
in
(3) To impose # "proper" income
War Revenue Ordinance
of as affairs on its very Tax. :. strong financial position. But as Government it is open to criticism. 11 may be criticised that either it has
1 do not tend to deal with these
the 10
Liquor
failed to arty out and develop fully suggestions to-day but I wish to state established immigration Department January 16, 1941, and which its sucial functions on it has taked! that, as far as revenue is concerned. I wish to make the following observa-put into immediate
more
venue than Tevenue
the operation of the War Revenue
was necessary
factory.
fresh the neople by way of taxation, Ordinance appears to be highly satis of restriction on Tree immigration
Colonial Secretary Moves Revised Budget Resolution
The Colonial Secretary, Hon. Mr N. L. Smith, presiding at the Legislative Council meeting this morning, moved a resolu tion giving authorisation to the revised estimates.
were
Despoilation Of The Poles
LONDON, Feb. 19 (Reuter). The Germans are steadily expropriating al! Polish property and business undertakings in the principal Polish towns, "Reuter" |learns from Polish eireles in
London,
In Nazi Poland's largest textile town, according to reports published reach 1 Anal dicelsian on this in the local Nazi organ, 70 private Important question and the Finance banks, 4,300 factories (Including all Committee desires an early oppor-leading testite factories), 500 depots tunity of a full discussion with the for textile, raw materials and finished.
8,300 shops selling hostery, Health Authorities, upon which will
and draft depend the question of authorisingshery, readymade clothe
fungy goods and 12,000 arnall business actual expenditure,
have so far been taken over. Items Added
firing
Over
3,000
German "special trustees" have been installed in these concerns. They receive high salaries at the expense of the former owners and shareholders,
Hon. Mr Smith The Hon. Colonial Secretary said: Gentlemen, I rise to propose the motion standing in my name.
On January 18, 1841, by a Resolu- Bon of this Council the estimates of expenditure for 1941-42 referred to a Select Committee consisting of myself, the Financial Secretary and all Unofficial Members of this Council. We now present our report in the form of the amended print bearing to-day's date.
As foreshadowed In the speech of the Hon.
Financial
Secretary January
10 the
the provision for the con- struction of a new Lighthouse Tender has been exclsed. It has also been decided not to proceed during the coming financiai усаг
car with the build- ing of the
proposed new block of effices and quarters at the Central Police Station, though a token vote of $50,000 remains in The draft estimates to cover any expenditure that may have been incurred in the preparatory work of drawing up plans, etc.
on
new.
werectis recommended
Infectious Diseases Hospital
Similarly the Select Committee fell that the times are not sufficiently
and propitious
the plans
not suficiently matured to
to permit the building of the proposed Infectious Diseases Hospital at the Medical Centre. The Kowloon
Committee
milfce realises that this 1. the Technical Hospitalisation Committee's report, 1938-1939, as the first major item in
In a long-term programing but it feels that, apart from difficulties of building the providing
necessary
This further resolution gives elleet to the increases in liquor duties which recently were announced in this Council on effect by His tions. I believe that the imposition Excellency's order.
Table Waters This further resolution gives effect I submit, Siz, that this practice of gather from the Financial Secret-was a new departure from the well-
a methodi keeping a surplus was
Tas the keep this place open to the Chinese, waters which was announced in this Proptily
1 nust say that restriction of this Counci) on January 10, 1941, met has long been con- Middle Ages
alone is less than other parts of the world but with this by His Excellency's order. ↑ well established in practical Brunelal Indeed Corporation Tax
close relationship with administration that surplus Bnancing expected to bring in
four taxes China, such a step can only be con- encourages extravagance and that $5,000,000 against an estimated return Colony's
$6,000,000 from the inposed by the War Revenue Ordin-sidered as an emergency there is no necessity whatever
forced
upon in by prevailing circum- As far as I can see the Finan- alate to keep a surplus.
elal Secretary's main disappointment stances.
com-yield of
11:0
to embark: Immediately
on
this
adopted by Government during the ary that he is quite satisfied with the established, ponies of the Colony to] to the imposition of a duty on table materials, this is not the time or pitee sidered as bad financial policy. Salaries Tax and the Curporation Tex-kind is quile a common practice in which was put into immediate effect however been provided which is
Fundamentally Wrong
for
I mention this not because I wish
1
admit
that the existence of a
of
liens a certain degree
Scope Of Tax
it
measure
and hospital. The sum of $100,000 has
MIDDLE EAST
ACTIVITIES
CAIRO, Feb. 19 (Reuter)-Fierce
aerodromes
011
larger than the usual "token vote,' in case it may be possible in the coming year to make a start.
The following are the items which have been added:—
Head, 5, Charitable Services.-
Sub-head 23, Grant to British Fund for the Rellet of Distress in Ching
$10,000.
Head 17, Miscellaneous Services,
Sub-head 24, University
of Hongkong ....... $100,000 (Increased from $355,000
lo $455,000)
$110,000
Items Reduced The following are the items which have been omited or reduced:
Head 11A, Harbour Department. Sub-head 1, Personal Emoluments,
Crew for New Light-
house Tender
$ 3,471 www.** Sub-head 21. New
Lighthouse Tender $ 600,000 Head 16, Medical Department.
Sub-head 68. Equip-
ment for new In- fectious
Discoses Hospital
Head 30, Public Works
Extraordinary.
Sub-head S, Central
Police Station-New Block
$. 103,500
(Reduced fron $800,000 to $50,000) $.750.000
Sub-head
fectious
20, In- Diseases
Hospital (Reduced
from $500,000
$100,000...
to
Light Raids On U.K.
Scotland Visited LONDON, Feb. 19 (Reuter). Bombs were dropped at two places on the north-east coast of Scotland this morning, states the Air Ministry.
Some damage was done to buildings and there were a few cusunies,
A few bombs, were dropped near the East Anglican coast but did little damage and nobody was seriously hurt.
Blockade Leaks
New Base Considered
SPECIAL TO THE "TELEGRAPH"
LONDON, Feb. 20 (UP)-The Ministry of Economic Warfare to-day disclosed that Britain lo considering $ 100,000 the establishment of new contraband
More Revenue Anticipated
to
The estimated deftelt of $7,553,776
the reous Services, in responso{ shown in the draft estimates as pre-
control bases near the Amerienš, pro-
Government-Ordered British Railways
of
The provision of funds for the
$1.857,061 bubly at Trinidud, to enable the Bri- equipment of this hospital has been
tish to intercept contraband ships and omitted as it is felt that, apart from
Turning to the other side of the feargoes especially from the cast const e in connection with the smallness realise that many of the social
the uncertainty which surrounds the picture, the new of additional dutles fof Latin America via Panama with hospital itself, there are at least hopes go table waters, hydrocarbon oils and goods for Russia and Japan from of the return from Profit Tax, which evils prevailing in the Colony are
of considerable emergency stores quer which were imposed with where they could reach Germany." to suggest that the estimated deficit is expected to produce a revenue of closely connected with this difficult It should, however, he problem of excessive population and for the next manciat year should be $900,00 only. met by drawing on this surplus os remembered that the War Revenue I have, therefore, no hesitation in Raids By R.A.F.vable during the coming effect from January 18 have neces- i sitated a revision of the estimate of Under Charitable Services pro- revenue: revenue from Duties will, hope that there will be no accessity Ordinance has only been in operation agreeing that some sort of restriction this for less than a year and that a tax on the growing population is, at the
amount But believe that to el 50, ESTIT policy of accumulating, surplus is of this satur generally lies some present time, desirable. I presume activity by the Rt.A.F. and South vision has been made for a grant of it is now estimated,
time before it can be effective. fundamentally waDUK,
that it was on economic grounds that African Air Force was the feature $10,000 to the British Fund for the $15,090,000 instead of $13,740,000,
to-day's communique whichRelief of Distress in China and under
LONDON, Feb. 19 (British Wire- Government had been
that states introduce this measure advised to
Dodecanese Islands were rated by Ro
representations from the sented on When this measure of immigration AF, bombers on
-$3,056,715.
receipts_of_the_main_British railway. to the administration)
It is quite trus that businesses
or University Authorities, the ammual to $3,15071ry 16 is thus reduced less)Following the posting of the the night
rant to the University of Hongkong Lastly, I would remind Hon. systents from September 1, 1939, by because it has at its disposal, what include all non-corporation firms and control was brought before this coun-February 10, 17 and 18.
do not pay ell for countderation tard November, Also during the last two one may call, a special fund from professional men who
days has been increased by the sum of Members that every item of Special Government order, the estimates for
the Expenditure in all departments and
ended December 31, 1940, must not be the Government assured us that "the the RAF. maintained concentrated $100,000.
year which it can draw for the purpost of Sainries Tax, but Anneing public works. However overlooked that the majority of these Immigration Department is to be ad-attacks on enemy positions in the
Nightsoil Removal every item of Public Works Extru- show the totul income to have been venture to say that this practice of non-corporation firms consist mainly ministered in the interest of passen-Tepelinl area in. support of the The Select Committee also brought ordinary requires the independent £247,992,000 and expenditure £208,- drawing upon the surplus to Bonacelat small shopkeepers whose capital gers and all shipping, generally and ground forces,
under review the matter of the sanction of Government apart from 480,000, leaving a net revenue public works does not conduce to good as a rule, is small. If there were not to cause any obstruction or in- Enemy troop concentrations in Institution, at a cost of over four the general provision offered by the £44,512,000. The net revenue for the
ancial oritisation and careful obvious evasion and unfair incidence convenience that can be possibly two villages to the north of Tepelini lakhs, of a system of nightsoil re-fall short of expectations or should ment was £39,050,000.
Appropriation, Bill. Should revenue full year guaranteed by the Govern- think that the remedy voted surplus to fall venture budgeting. With a
In spite of this assurance and military bulidings were heavily moval by labour directly employed expenditure at present unforeseen bef back on there is a possible temptation is to amend the War Revenue Ordin-there have been many complaints bombed.
As it on the part of the administration
Continued support has been given is impossible, in present circunt incurred, that sanction will be with presenting its annual budget to the Your Excellency has already recon-against the
to the British troops on various stances, to proceed
the complete held. legislature to withhold A complete stituted the War Revenue Committee department.
Public And Shipping
by the
Thanks Expressed statement of its needs for fear that in order that the Committee may re-
raids were carried out on Keren. Health Authorities
Besides thanking, on behalf of the its estimates may be
From the general publie these com-) cut down, examine and advise Government on
was expressed as to whether the Government and, I think I may say Another possible abuse of the use of the existing measures of war taxation ifaints have been mainly directed
LONDON, Feb. 19 (Reuter)-The the surplus is that the administration in the fight of the Colony's present against the difficulty in obtaining the
New Zealanders' benefits to be gained by the sub- the whole Colony, the Unoffieta! end the actual necessary forms, the unusual delay
stitution of coolies 'employed by may be spending publle money first financial position
Members for the time and labour Netherlands East Indies Government Generous Gifts Government for the before coming to the legislative body receipts from the four taxes imposed in Issuing certificates and the Insist-
existing free which they gave to the preparation hus received a Japanese request to by the War Revenue Ordinance. It Toy approval.
that
LONDON, Feb. 19 (British Wire-lance coolies would be commensurate of the estimates in their revised form, explore oil areas in the Netherlands photographs must be taken task of this Committee to an
it I should like to express my particular East Indies and has indicated its Arms. From the less)-Mr Thomas Baker, a New Zea- with the expenditure involved: concerns they have been land resident In the Straits Seitle was decided, however, that the pro-gratitude to the Financial Secretary will could be explored, according specify certain areas some practical solution and to give by "approved" shipping conce
which to the best It may be said in favour of this Government advice as
I am very conscious of my own a Japanese report.
The Dutch authorities, however, policy that the object of maintaining means of raising revenue to meet onnected with the undue delay in ments, is the first to purchase the vision for the emoluments of the land to his assistant, Mr Told.
the examination of passengers' papers right to name two Tornado fighters. 2,000 coolics should be allowed to prevailing War expenditure under
The latest gift of £10,000 brings stand in the draft estimates on the shortcomings in this
respect but I no actual ex- feel sure that Hon. Members will are reported to have signified their of emergency. If that was the inter-conditions. I will therefore abstain and the fallure to post immigrations total contribution to the Aircraft understanding that
cers on bed ships to facilitate Fund to £30,000. Mr. Baker, who is penditure will be incurred without apprecinte that during the past few willingness on motion that Dutch such examination.
The Chinese member on the Execu.4 years old and owns rubber planta- the specific approval of the Finance months it has been physically impos observers accompany the Japanese tive Council
and in mines in Malaya and Committee after further considera-sible to devote the time and attention surveyors.. tions inen as well 45 my twoj
ore normally expected of a Chinese
cullengues on this Council sheep and cattle farms in Australlation of the whole matter,
There was insufficient time, when Colonial Secretary in framing the building of two ships to be presented the daily collection of nightsoil to be and I, have found it
and New Zealand, was the founder in this item came for consideration, to financial policy for the coming year, it necessary tci. to the Admiralty and War Depart, undertaken by Government I under-address a juht communication to the the last war of Austration and in regard to Malayan battle plane squadrons num.
Time To Use Surplus
jance.
a surplus is to have a reserve in case tion, think the present moment is from making further comments,
the proper time to make use at such surplus. A portion of it may be set aside for the cost of the proposed
Nightsoil And U.C.
With regard to the provisions for
administration of
this
by
fronts in Italian East Africa. Several scheme as alle doubt
ment and the remainder can be used stand that such provisions would not an Galati cs, and in our bering 04 machines.
for carrying on defensive works in be carried out if there were no sign
It has
the Colony. If Government were to of any improvement in the Colony's some of there
opinion
ion there are urgent needs for agree to this course, there would be finance. I do not think that it is
reform in the method of conducting no deficit in next year's budget and quite correct to say that the Urbis department. I may add that the munity is second in Importance to no necessity to curtail its social Council, of which I am a member, Fervices, Indeed all social services hus definitely suggested to Govern attitude of those in charge of this that of rice. The situation has gone cha be further expanded with revenue ment to put an increase of one per department towards the general pu- from bad to worse during the inst few months. This might have been meet blic is not at all helpful, coming in from ordinary sources.
in order to cent on rates is evident from the operation of expenditures on this undertaking. As
Food Control
caused by seasonal demands such as the War Revenue Ordinance that the a matter of fact when this matter On the question of Food Control, the Chinese New Year but I have inxable ability of the community is was brought up for consideration, the wish to urge Government to pay the doubt that it
been
aggravated extremely good as well as extremely question of finance had not been closest attention to the recent rise in pronteers. It has been proved that of unscrupulous ficxible. I submit, Sir, that this discussed. I consider that it is not the cost of living In the Colony, the cost of firewood imported ability and flexibility of our taxation fair to place the, entire burden |
and Brewood. system constitute the real reserve of1on property Owners without re-particularly of rice
of these are the two daily necessities of Hongkong including freight and all our financial power which has stood gard to the fact that some
the
Chinese Community. The the test of time remarkably well.
rise in water the tenements have
market price demanded by exorbitant dealers. I understand that D serious matter for the Chinese, Government are now taking mea- this responsibility of daily collection I will now pass on to make some of nightsoll, if undertaken by Gov classes, and I consider that Govern- and I believe that such measures will sures to relieve the present situation ไป a service rendered to #ment should take vigorous measures meet with success. general remarks on the estimates for ernier clous of the community to combat the evil. With regard ta
My Chinese colleague, Hon. Mr
General Policy
flush
11:0
inlo
systems. I wish to point out that prices of these two commodities ag charges is far below the pre-|
particularly the initiale and Poor over
the next financial year. The figures in the estimates have been carefully and that class should pay for it. rice I know that meatures have been considered and closely scrutinised by
that
British Parachutists Exercise
on Moors
N.E.I. Oil Sought By Japan
10
New Life Movement
CHUNGKING, Feb. 19 (Centrul News). Chungking observed the seventh anniversary of the New Life Movement. with meetings, vocational contests, exhibitions, mass weddings, athletic competitions and special, movie shows.
Madame Chiang Kai-shek started the anniversary observance by open- ing the newly-completed Loyalty Memorial Hall of the New Life, Socini
Pacific Freight Rates Up
LONDON, Feb. 19 (Reuter)-Many generals and R.A.F.Service Centre. officers and their staffs, including General Sir John Ditl, Chief of the Imperial General Staff, -General Sir Alan Brooke, Com mander-in-Chief, Home Forces, Air Marshal Sir Arthur Barratt,; Air Officer Commanding-in-Chief, Army Co-operation Command of the I.A.F., and General Viscount Gort were present at para. chule exercises in the moorlands, states the Air Ministry.
Over a bleak stretch of moorland,
an ILA.F. troop-carrier emerged from
San Francisco, Feb. 10. Factory Besieged
The Facific Westbound Conference, accordance with the pre-representing 17 Pacific shipping lines, wish to the clouds and suddenly the officers arranged plan, the room, weapons announced to-day an increase of after another. Before the plane had tory which, though eolated, was rates. The increases will be effective disappeared into the cloud again, all guarded by sentrlen and employed from either March 1 or 16 and will the men had landed, unburned about 50 clvillon workers. their parachutes and prepared to altack a
the Select Committee of this Councst Tom is spoken very fully on this taken und are being taken by Gov. say how regrettable it is that we have saw parachutists dropped from it one ready for aetlan, rushed to the fac-from 10 to 16 per cent. in freight
and
them.
1
FLT1
♫
had
silently
vital remote
The
secrecy of
Before I resume my sent ernment to check the abnormal rise found it necessary to cut down
good deal of Publle Works I will confine my remarks to the subject. While I agree that the in the price of this commodity at the sedine, not so much from a desire Exirn- general policy in connection with scheme sponsored by the Urban end
I recognise that end of 1940. Walle I
It was assumed for the purpose of cover virtually every commodity, Council is Improvement,
คน
fee such mensures have, to a certain ex to balance the budget but in
greatest entd
Shipping circles declure the in- Before I offer my views I wish to hit unless Governinent is in a post-tent, met with success, I feel that lurt to conserve, although n
An enemy objective, which was a small the exercise that very small way, much needed foreign imaginary factory where, a known had been taken by the enemy to state that I ain in general agreement on to carry out that scheine in full. Government should now review the currency and tonnage for the success-high personage and some of the most
the preserve
creases are partly due to the with- the with the remarks made by my the alternative method mentioned by whole situation carefully with the ful prosecution of the War.
tonnago from the Senior Chinese Colleague in regard to Mr Tam in dealing with the existing object of securing an effective control
senior officers of the enemy High rendezvour and it was the duty of drawal of blg I realise that the tendency to-day Command were to watch a private objective until the arrival of inore general upward trend of operations the parachute troops to surround the Pacifle and partly because of the the War Revenue Ordinance, and system appears to be a practical one. over the rice stock in the Colony but is for Government to play a more femonstration of a
in regard to quality as well
to act as demolition parties in the cost and insurance. Education Subsidy
and being made there." ment and the Immigration Depart- In the matter of education I wel-quantity. There has been a report pronounced part in the social
Wille this was gathering, Britain's destruction of the factory, machinery to shoulder increased
and military personnel.
Going freights to Hongkong, on- Among the proposals for increased sidy code for vernacular schools oor quality that they are not it for and additional duties. I hope that manders were waiting on the moor. The oxercise was most impressive nounced to-day are $12 a ton for taxation for the purpose of raising which makes generous provisions for human consumption.
with the return of peace it will be The R.A.F. troop-carrier unobstruat showed the potentialities of this grain,, $10 for metals, $18 for ma further revenue, the Financin) Secret-subsidies to schools on the basin of Firewood Profiteers possible for this Colony to go toc-sively came through the clouds in bad method of attack and also proved chinery. The rates for those cargoes ary has suggested three alternatives japproved expenditures on salaries of The position of firewood in theward with such Increased reapon-weather, demonstrating the surprise the efficiency of co-operation between a month ago were $10, $13 and $17,- which are briefly as follows:_ teachers and rent of school buildings. dementle lite of the Chinese com-alities and additional duties.
nature of the attack.
the R.A.F. and the Army.
Death Duties and his criticism at the working of the Food Control Depart-
ment..
05
and
now
weapon
feame the provision for a new sub. Gut some of the stocks are of such a conomie life of the communities lending Army and Air Force com-
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