THE HONGKONG TELEGRAPH. THURSDAY, SEPTEMBER 27, 1934.

To Unofficial Members' Criticism

Sir William Peel Replies To

ASSESSMENT REFORMS

OPPOSED

VICIOUS PRINCIPLE OF LIVING ON GOVERNM ENT SURPLUS

SUGGESTIONS STUDIED

H.E. the Governor made a lengthy reply in the Legislative Council yesterday afternoon to the Unofficial comments on the Budget, dealing at length with the financial position in regard to the suggested reduction in

rates.

Jigura

of the

tion

Iconskleration and the new agreement less than five years hgo, but also already doing excellent work, but do was signed by myself and the Minis-that Retrenchment Commission, velopment is necessary in certain mainly of Unofficials, irections for which it has not been ter of Railways of the Chinese Gov-ecnsisting ernnient on the 15th instant.

which I appointed only a year or possible hitherto to make provision. 1 tuke this opportunity of con-two ago, found. Itself unable to re- Vocational instruction in an import- gratulating the representatives why commend nuy very drastic reduction ant dasideratum, but the present pre- participated in the Conference, not of establishment. We nte, however, muses are not inrge enough for what merely on the successfui consumma-carrying out a scheme of a leen is required. The Bullding Contrac

and tura' Association have generously of their efforts to reach an branch of the Senior Clerical agreement acceptable to both sides, Accounting Staff and are endeavour- come forward and offered to con- but also on the spirit. which pervading to train local sanitary inspectors,struct a new building at cost price, ed the negotiations. Buth parties Further, I hope that it may be pos-thus appreciably reducing the expen set out to arrive at an arrangemontible to train local nursing sisters diture to be faced by Government. which would be to the mutual ad- and so reduce the large number. of With this generous sifer, before it vantage of both sections and avoid-nursing sisters recruited from Eng-and having regard to the essential Jenny tenintation to get the botter land. I propose to go into this queenture of the work to be carried out, of one another without regard to tion with my honourable friend, the Government, has considerd it neces the main issue.

Director of Medical and Sanitary sary to proceed at once

schema. Services.

Bxpenditure,

The University,

with the

Volunteer

are far

appears

I cannot but

for tho

Kowloon-Innkow,

I need hardly point out that the The Hongkong Naval The proceedings of the Conference rise in the dollar has reduced con- Force which was instituted nearly a and the spirit in which they were lerably the local cost of the steri- year ago has so far proved a Hae- ccas and some increase hus beon al- ing establishment,

lowed in the Estimates for the Force. model. Both Sections can, I think,!

The Police,

The Admiralty, who are anxious to carried out might well serve as

see this movement develop on right now look forward with conndonce to increased prosperity whien uould be There are a few increases in the lines, has ailotted a sloop us a lead. further enhanced when the Canton Police establishment which have been quarter ship for a year in the frat Hankow line is finished-probably found to be unavoidable, owing part instance. Commenting on Mr. Kotewall's suggestion of aby the end of 1830-and linked up ly to the institution of the Kumand new Poltee Division at change both in the amount and method of the assessment, with the present line. The question Home,

of completing this link was not con- Shanshuipo, the traffic needs in the

Under the heading of Miscellane- the cost to be met from the Colony's surplus funds, Sir-idered to be within the purview of New Territories and the Registration ous, honourablo members will sea that William Peel said he considered this involved the vicious the Conference, but I think that it of Persons Ordinance.

trensonable to akume at WHE In referring to this department I the Government has again provided It ap should like to associate myself with a sum of $359,000 as a grant to tho principle of living on capital, to which he was entirely completed in due emorse.

pents to me inconceivable that a wise the tributes paid by my honourable University. This grant is subject to opposed.

and far-sighted administration would friends, the Colonial Secretary, and consideration annually. There might some argument reducing it, in view of the His Excellency, however, said Mr. Kotewall's pro- hesitate to complete a link, the ab the senior Unofficial member, to Mr. possibly have been

sence of which would to Large Wolfe, who is shortly going on leave for

deny to the Province or prior to retirement from the post of Colony's financial position, but the; posals had been referred to the Economic Commission, extent

Mr. finances of the University of Police. Kwanglung obvious benefits of a line inspector General the recommendations of which would receive full constructed at ensiderable cost for Wolfe, who originally joined, the from satisfactory and many argent the farther development of that pro- Malayan Service a year after my needs of the Univerally remain un- sideration by the Government.

vince.

reif, has had a long, honourable and fulfilled. I am glad that it has been be described

distinguished career in this Colony. possible to carry out a few necca- His Excellency the Governor said: |which might Attingly

And I feel that ente

The post of Hend of the Police in sary extensions, but there Honourable Members.-The Budget as essential,

flongkong has been by no menna an little prospect of the University be has been dealt with so adequately again we must regard the Budget as

Turning to expenditure, would easy one. Not only have the pro- ing able in the near future to in- the grave of many: by honourable members, oflein and in a

T. Public Health. invite attention in the first place to ems been varied and important, but stitute & Chair that it would be almost hopes, unofficial,

the fact that the estimated expend the staff in of such an heterogene- The absence of this Much Work in land. ankind of me to burden you with

ture, exclusive of Public Works Ex-ous character that special qualities regard as a serious stigma on the further comments on details. I will

and the final payment to few A honourable members however traordinary therefore restrict myself salient features.

will see, there are many important for the Naval Arsens Yard but in-are called for in the Head of the Colony. I have more than once ap-

Department if the machine is to be pealed for financial help honourable works in hand and the total to be cluding departmental special expendi-maintained at a high standard of University, but unfortunately with- congratulate my friend, the Colonial Secretary on his spent on public works extraordinary ture, is rather more than covered by efficiency. It will be readily conced-out result. I realize that times are ablo speech introducing the Budget and loan works substantial. As the estimated revenuo excluding the ed that Mr. Wolfe has maintained bad, but I should like to express the and that he can hope that when they improve some and thank him and his officers for you are aware, I have, during the special receipts from land sales and such a standard

the profit on exchange transactions. well look back with satisfaction

to of those who reap the benefit of such the excellent work which they have past few years, carried out the poll The margis, however, is small, and his record or service in this Colony, improvements will give generously date in connection with the prepara- of submitting a special supplemental this fact added to the fact that we

In striking this personal note towards the support and develop tion of the Emniimates. I also thank Budget before the middle

our balaise wish to associate myself with ment of the University, which I re the Hon. Colonial Treasurer and the year when our financial position has have to draw heavily on

step safe. This unces in order carry out speciale telbute paid to Mr. Holmes, the gard as a great amet to the Colony Hon. Director of Public Works for rendered much

Further, policy has been approved by the public works in my opinion renders Crown Solleitor, who also is retiring and one which undoubtedly adds to their useful memoranda. wish to express my appreciation of Secretary of State and this Council it quite impossible to make any fur-next year. I do not feel that I can the lustre of Hongkong, though that the, good work done by Mr. Butters and hope that it may be possible ther reduction ja laxation.

adequately express the extent to lustre is likely to be dimmed unters which Government has been indebt- more support is forthcoming. in connection with the Budget. He to follow it again next year, though.

The Assessment.

ed to Mr. Halmes for the valuable

·Central British School. isan had a lot of difficult detail to this will depend in a large measure.

My honourable friend, Dr. Kote-advice and nssistance which he has rontonil-with, requiring much oseidon the position of exchange,

In addition to works under the this year to wall, has made certain notable prerendered. He has been a mort de aus work, and he has performed the policy has enabled us

accelerate the work on the new Gov-posals. He recommends a change in veled Government Officer and has heading of Public Works Extraordin duty most efficiently.

I am indebted to honourable mem-rent Civil Hospital, Shaukiwan bath the method, and amount of as. prver spored himself in the poblie arv to which I have already refer red, the sum of three lakhs is pro- bors for their careful consideration Road and other services.

sessment which would have the effect service,

vided Public Health.

for the now Central British of the Budget and for their helpful

of reducing our revenue by nearly

School. comments and criticism.

This, as han already been two and quarter million dollars, i

Referring to the Medical Depart-stated, has been put in the hands ance with the traditions of this Coung the most important works have already shown that what may sent it wits be seen that some in- of private architect and I trust

necessary to bu called recurrent all the Unofficial spirit has through which it was deemed

revenue only out been sympathetic and tolerant of postpone are the Wanchni Market, barely covers, recurrent expenditure: creases have been provided for due that progress will be satisfact

to the taking and that this now school, the need Hospital and $ the efforts of Government to fulfil Mental

now and we have therefore to call upon a large measure ita duty in the best interests of the health entre at Bonham Road, our surplus balanees to a very con-over of the Tean Yuk Hospital, the for which has long been appreciat

of the Kowloon Hospitalled, will be successfully completed in shall certainly consider whether siderable extent to enable us to pro-extension On behalf of my wife and myself start any not be made en ons or ceed with necessary public works tond increased health work particular.the not for distant future.

My honourable friend, the Colonial I thank the Unofficial members for more of these if the financial posi- most of which we are already comly in connection with Infant Welfare

Centres. Much, however, still re-Secretary has already informed the i the kind and graceful reference to tion towards the middle of next year mitted. In spite of this he revocates mains to be done. Meanwhile I may Council of the progress on the Shinic us, made on their behalf by the appears to justify it. I am indeed that we should grant concessions

prepared to go further; and, if the which will further reduce our re-say that the work done by Dr. Selby Mun Waier Scheme. This report In Senior Unofficial member,

tinofheial members are in favour of venue and so necessitate a further and others at the venereal disease dicates clearly the good work that it, to enter in committee some pro reduction of our surplus haluuces inclintes has been adinfrable, while the has been done. The difficulties which vision for Wanchal Market. It is a order to meet recurrent expenditure. extension of Infant Welfare Centres have been encountered have been con This is the fifth Budget

which very urgent work and should prove That appears to me to involve the both in Hongkong and Kowloon have aiderable, but progress has been has been submitted to the Council remunerative.

These sutlafactory and I am confident that vicious principle of living on capital,been thoroughly justified. since I assumed my present post and

In regard to revenue which has policy to which I for my part am centres are increasing in popularity in the able hands of the Resident it is not too much to say that the eriously diminished during the past entirely opponudis proposals ap and there can be no doubt that they. Engineer, Mr. Hull, we can look for- position hns become increasingly two years, that derivable from duties pear to be based on two assumptions are a most valuable contribution toward to the completion of the achente difficult, The trade depression hangs would appear to have reached its one that the assessment is unduly the health of the Colony. At pre- within the estimated time, and with- very heavily on us and there has lowest level and I trust that we shall high under the conditions which ob- sent centres are established in rent-in the estimated cost.

ed premises; but I trust that next beon little or no sign of it lifting soon see an upward tendency. Part tain today, the other that the year there will be a special centre

Loan Works. since the last Budget. I am, how of the reduction is, of course, due gested concessions would have over, an incurable optimist and I to the fact that certain duties are marked beneficial effect on the gen-in existence at Wanchai generously In connection with loan works,

provided by private contribution and handed over to Government when honourable members are aware that Government decided to take advan- completed.

tage of the favourable state of the Fanling Centre.

Jon to re money market to raise

Colony,

Dicult Position.

in uecord-

'Postponements.

The

think that it is permissible to hope based on a one and eight-penny dol-eral situation. that we have almost reached bottom, far

year.

at the currentį and converted

Oplum Revenue.

Water Revenue.

Taxation Moderate.

It is true that

he admits that

+

The Harbour.

loan

for

ពត

for although the revised estimate of rate: revenue for the current year is over two million dollars below the ori- ginal estimate it is contemplated The Oplum revenue has fallen very such an effect would probably be in! I take this opportunity of express-imburee the rovenue account in res- that, apart from

the accumulated seriously and I am afraid that there a large measure psychologien, but in the thanks of the Colony to the perks and to make custo

and to make provision proceeds front the proft on exchange can be no doubt that this is due in even so I am compelled to join issue various Chinese hospitals and dispen- works transactions, the revenue for next a large measure to smuggling. In with him on both points. I main paries, and also to the St. John Am-further work. The flolution may be year will be approximately the same my oplosion this has a distinct effect tein that taxation in this Colony is bulance Brigade, for their great ns-regarded as a great success, though an the revised figure for the current ou the proceeds from the duty on very moderate and I feel very strong-sistance in connection with matters I should like to have seen a larger

It is note number of individual subscribers. tobacco. My experience, both herety that the concessions proposed by of health and disease. and in Malaya, has been that, when him would have very little effect on worthy that a new health centre was take this opportunity of thanking my The BalancEN,

less opium is used, more tobacco is the present economic depression. Dr. opened early this year at Fanling, honourable friend, the Colonial Trea- In view of the serious shrinkage smoked, and if the smuggling of Kotewall argues that if Government the cost of which was defrayed by surer, for the sorvices rendered by to him to Government in connection of revenue it is very fortunate that opium could be reduced I feel sure were to apply a temporary palliative Sir Robert and Lady Ho Tang we possess substantial credit bal-that the amount of tobacco import of a reduction of 4 per cent in the whom the thanks of the Colony are with the flotation of this loan,

I cannot usefully add anything in In real due. In addition to the money pros arices, though the drain on them dur-ed would increase. Such measures assessment rate confidence ing this year will seriously diminish as are possible aro taken in regard catate would be restored. He states vided for the building and its equip. regard to the Government House, and thurn. This happy position is due to apuggling and the Superintendent that people will not buy property ment, the donors also gave a sum, City Development Scheme. Provision in a large measure to a policy of of Imports and Exports, Mir, Lloyd, because they are uncertain about the the income from which will pay part has been made for proceeding with trusted not to relax his able | future. I do not see how that posi- of the cost of running the Institu- the first section of the work, but in view of the state of the proporty not hastily spending our reserves in nay the pious hope that to-morrow will efforts. Owing largely to our pecu- tion will be ameliorated by a reduc- tion.

parket in Hongkong to-day it is pos Government Civil Hospital. sco an improvement and that all will liar geographical position the pro- tin in the rates, which would admit-

sible that the scheme will take lông- tedly be only temporary and which be well. I realize, however, that ex-blem in very difficult.

would almost certainly have to be There has been a notable developer to complete that was originally cessive caution should be avoided.

I have, however, reinstated in the comparatively near ment of hospital buildings in the anticipated. Thero are crities of our polley of maintaining a balance not less than Some reduction is anticipated in if such concessions were to result in and Government is doing its part view, it will be a success.

future. I am prepared to agree that, Colony during the past few years, doubt that, from a financial point of ton million dollars, but I ant strong the receipts from excess water sup- a large measure ly of opinion that this figure le not, ply owing to the concession of Gov- the mere fact that they would neces

of general relief, The new Government Civil Hospital is progressing satisfactorily and excessivo having regard to the crament of rebate of 15 per cent. sitate u serious inroad on our sur.when completed should provide Hong- A considerable sum has been in- mutability of exchange and the fact on accounts which are promptly paid.plus, balances should not be a deter kong with one of the finest institu- cluded for dredging in the harbour that we almost invariably have I shall be surprised, however, if such rent; but I am not convinced that tions of its kind in the Far East and for works connected therewith. heavy commitments extending appre-rebate does not result in a alightly they would effect the general relict Kowloon Hospital, which is an al-This dredging will deepen the ap- ciably beyond the year for which we increase consumption, which may which he would claim nor, more es.mirable institution, has been steadi-proaches to overal existing, plers, aro budgeting. I submit that the compensate for the concession grant pecially having regard to the sue extended and now out-patients thereby affording adequate facilitica policy in sound; and, were it noted.

cess of a recent offer of investment building is now on its way. "Honour for deep draft vossels to go along- for the fact that such substantia! I

of opinion that the prin- in real estate and land development, able members however, must realize ride. The question hun been raised am stiil resources exist to-day, we might well ciple of a free allowance of water am I convinced that the conndence that these enlarged and improved of how far the cost of dredging In be porturbed in regard to our ability|is” unsound. The systom tends to of the public in lauded property is buildings will necessitate & permon- the harbour should be borne by to meet futuro liabilities in respect bear more heavily on the poor than at such a low ebb as he has stat-ent increase to the staff. of works on which we have already on the middle and upper class and o. However, Dr. Kotewall's pro embarked. It is indeed probable a charge, lower than that which now posals have, I understand, been re- that we shall havo to restuco our obtains on excess supply, on the ferred to the Economic Commission balances to below

the prescribed whole of a metered supply would be which is now sitting, and I have no ference to the estimates of the Sani- shipping in the harbour should bo I do not propose to make any rosary to afford adequate facilities for limit for a short period.

more equitable.

doubt that the Commission will fully tary Department, but I would take regarded as a liability to be met out consider them. Any recommendation this opportunity of informing the of general revenue. I am not, how- that the Commission may make will Connell that important proposals ever, prepared to admit that if any I am not averse from this, part-1 Post Office receipts continue to receive the full consideration of Gov-have been under consideration for company or individus!" chooses to ly because in times of depression fall, partly due to the depression andl

ernment.

some time in regard

what might construct ofther a pier or a wharf The Civil Service. do its utmost to afford employment, tal rates. I regret that further re-

bo called the municipal side of the such company or Individual has

thereby the right to demand П partly because our resources do not ductions are not possible at present

I and my advisers have given care- Colony. These proposals are in

deep Justify our postponing our most es- but on the other hand wo no afmful thought to a possible reduction largo intasure the outcome of schemes dredging in order to enable

put forward by. my honourable draft vessels to approach such pier in personnel but have felt unable to

I am prepared Sanitary Services, but the subject in should naturally be carried out en

s very dimeult one and though legis-tirely at public expense. to admit that the cost of adminisation in being, prepared it is not ment, as the trustee of the public, The Railway.

tration is on the high sido largely finally ready for submission to the before spending its money on such owing to the number of storting paid Counell

a purpose, must antiaty itself that honourablo friend, the Colonial A bright feature in the revenue officers. The problem of reducing

such pier or wharf is necessary to Secretary, and include the present catmates is the increase of revenue this is a very dimeult one And I

afford adequate facilities for hip- Naval Arsonal Yard, part of the expected from the Kowloon-Canton hava no cellation in enying that.

A notable feature In regard to ping, and that it is not superfluous, present site of the Government Civil Railway in spite of the fact that there are a large number, not only

but also of Unoficials, Education ie the development of the. The construction of such works may to the facilities alrendy' existing. Hospital and Victoria Gaol. With have conceded to the Chineze of Oficials

Bection an increased proportion

I regard of who hold the opinion that such a Junior Technical School. the best will in the world, however, the recolpla, on throuch frolk. · Asinolley wantil not be wire. I would the development of this school on possibly be to the advantage of tha

Gravo of Many Hopes.

The l'ont Оeo.

is desirable that Government should partly to a reduction in certain pos-

The Municipal Side.

public funds. 1 may say at onco that I accept the general principle that such dredging as may be neces

thint

sential works and partly because weling at giving improved facilities effect any reduction having duo ro friend, the Director of Medical and/or wharf at any stato of the tide can look forward to the realization pecially in Kowloon and the New gard to efficiency.

in a few years' time of certain as Territories. sols which will roinainte

our bal.

ances at the figure laid down. Thens assets hava boon referred to by my

Education.

has, to my sorrow, been unavoidably revision of the Railway Working that existing rates of salary were fortune „murture: cbffnecica, wi necessary to postpone certain works Agreement has recently been under recommended by Salaries Commission cation in the Colony to-day. It is

.Govern-

company or individunt who currion (Contintied on Page 5).

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