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unlikely that I think the advantage is outweighed by the complications in accounting system and other disadvantages. In the case of Hong Kong, the proper course in the case of public works votes has been pointed out to the Governor in Sir Arthur Gordon's despatch 105 of 15 Aug 79 (11203/79). It only remains to refer to these instructions, and to state, with regard to Mr. Keswick's remarks in para 4, that the vote of each year should appear on the Estimates as total. Estimated expenditure of that year.
Secondly. With regard to Mr. Keswick's remarks on "a vote 'on account' of a large public work", and Sir J. Henry's allusions to the deficits at the beginning of his administration giving place to surpluses (see beginning of para 5, and his reply to Mr. Keswick's remarks), I do not think Sir J. Henry's answer to this (para 2, person marked) is satisfactory. It is obvious that where there is an accumulated surplus balance out of which great public works are paid for, and where money is borrowed for such works, it is possible to show either a surplus or a deficit according to the way in which the receipts and payments on account of such works are shown in the returns of the expenditure of this year.
Sir J. Henry says "Whatever new expenditure is incurred during any year should be met by the revenue of that year; otherwise there is a deficit." What depends on what is...