22 
Mr. KiNer: Tt was recommended because ‘there was no 
time' to make an alternative scheme. There would have been an - 
enormous dislocation. 3 
The CHANCELLOR oF THE EXCHEQUER: That is quite true, 
Sir ALGERNON FirTH : That was one of the main reasons. 
The CHANCELLOR OF THE EXCHEQUER: In respect of that Mr: 
Mugpratt said: ‘No; we want to have a reasonable adjustment 
period. (The Chancellor of the Exchequer): I say I do not think 
that is possible. (Sir Vincent Caillard) : The principal reason for 
asking is that we do not want a fresh system of taxation invented, 
and perhaps without due consideration.” 
Mr. RyrLanps: That is a very important point. 
The CHANCELLOR oF THE EXCHEQUER: I said: * Let me ask 
you, Sir Vincent, on the spur .of the moment; of course nothing 
that I have said is in one sense final; I shall think over what I 
‘have said—1I have not hesitated to say ‘what I have because if you 
see at present I cannot do this and cannot do. that you may care 
to put some alternative proposition to me.” Then 1 said: 
‘ Suppose I was to continue the tax for another year, I should not 
continue it at 8o per cent. I think that in any case would be too 
high; how much it would come down I cannot say. You talk of 
50 per cent., that would be a minimum.” At any rate, I did not 
send you away expecting more than you got. : 
Mr. Hogsson': No. . 
The CHANCELLOR OF THE EXCHEQUER: ‘ Soniewhere betweetl 
80 and 50. Now if I close the tax on the 31st March next year, the 
right of recovery ends. If I continue it for another year at a lower 
rate I cannot, as I see at present, continue your right of recovery: 
That being my view of the case I want to put to you this question.” 
This is the part that I was looking for : “Would you sooner that 
“1 continued it at a lower rate without continuing-your right of 
recovery, or that.I looked out for some other forin in which industry 
might contribute in lieu of this tax?” . . . That was replied 
to by Sir Vincent Caillard, who introduced the deputation. 
Mr. Hosson: He was President at the time, of the Federation 
of British Industries. 
The CHANCELLOR OF THE ExcHEQUER: He said: “1 can only 
give you my personal opinion, because we have not discussed it: 
I ask you to take it as my personal opinion that I should most 
decidedly prefer the Excess Profits Duty being contintied, because 
I think fresh taxation has to be most carefully thought out, but 
I should try to convert you on that point.” 
Sir HErBERT Dixon: At a lower rate you asked him, ; 
~The CHANCELLOR OF THE EXCHEQUER: At a lower rate than 
80 per cent. : 
Sir HERBERT Dixon: I beg your pardon. 
The CHANCELLOR oF THE ExcurguER: “I should not contitide 
it at 80 per cent. but at a lower rate” was what I said. I had in 
mind that you had asked to have it continued last year. That was 
the reply of the chief spokesman on that occasion, though speaking 
for himself he was very representative of them all.” He would 
much sooner have it continued at something below 80 per cent. 
than have nie then turn to another ‘alternative. When you put 
those very strong views to a Chancellor who was at that rhomeiit 
seriously engaged on finding an alternative, and had been working