If these figures of Expenditure can be accepted as approximately correct, there will be next year apparently, because of a deficit of $300,000 instead of a small surplus.
I submit therefore that without further detailed examination we cannot possibly accept his view that additional taxation is necessary.
I tel: asking him to send home as soon as possible the Draft Estimates for possible information as to his views with the figures of last year as to his reasons for arriving at the figures in the present Despatch.
And expand the Telegram from the above minute. At the same time we proposed in 14926 writing at same time as Swg 10 Aug.
Yes. We must keep the tightest hand on Hongkong finances.
I should telegraph to your despatch No. 163 "Send draft estimates for next year as soon as possible. I cannot consent to further increase taxation without satisfactory details including explanations as to how bank advances will be met and additional expenditure contemplated."
This paper 164 I expand as proposed by M. Johnston and 14926. Also press G.G. to get a settlement of the boundary question on the ground that the Colony cannot afford to run up a big bill.
Experience after dealing with Mr. Blake shows he is sanguine. In Jamaica, he cannot be too careful in dealing with him.
El 17 Aug.
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