The construction of the following works has also been approved by the Secretary of State: -
Five New Schools,
..$ 25,000
135,000
Repairs and Extensions of Police Barracks, for some years past reported
to be necessary on Sanitary Grounds,........
Other Sanitary works recommended by Mr. CHADWICK in connection
with main drainage and the proper sewering of all private tenements, 1,000,000
And it has also been decided that a new gaol is necessary, the cost of
which is estimated at about,
400,000
11. Now to meet these important works we have a probable balance of assets of $657,420 and it is proposed to raise a loan of say $1,000,000. I do not think that in the present state of the Finances of the Colony a loan for a larger amount can be undertaken, as this will necessitate an annual provision of a sum of at least $70,000 reckoning the interest on the loan at 4 per cent. and a sinking fund of 3 per cent. If the Government of the Colony pledges itself to a larger loan, it may find difficulty in meeting its engagements, and be only able to do so by the sacrifice of all ordinary expendi- ture on Public Works and Roads for several years.
12. It is clear therefore that this Government ought not at present to undertake any new works, the execution of which could be conveniently deferred to some future date. The Government should reserve its sanction strictly to new works, the immediate completion of which is an absolute necessity, such, for instance, as the Quarantine Station on Stone Cutters' Island estimated to cost $10,000. By undertaking at the same time too many works on a large scale, it may find itself compelled to have to determine, in the course of a year or two, which of such works shall be proceeded with, and which shall be postponed, until a more flourishing state of finances permits of their being completed.
Audit Office, Hongkong, 10th November, 1884.
(Signed)
W. H. MARSH.
89