Mr. Fiddes
A
I have had considerable difficulty in getting hold of 38654/01, now attached, from which you will see that the instruction in the Model Financial Rules to include Arrears of Revenue in Assets has been superseded by an instruction in the contrary sense. Similar instructions have been sent to other Eastern Colonies. The non-inclusion of Arrears represents the usual view; the locus classicus is a Cyprus paper of 1898 containing minutes in this sense by Sir J. Anderson and Sir E. Wingfield, though the Treasury hold the opposite view.
A
The Hong Kong Financial Returns are therefore all right. I don't think we need notice the inclusion of Arrears on p. 2 of this. The addition of Arrears is due to the laudable intention to make the best of things.
The balance to the good thus made out explains what I found impossible to make out on 17730. I think, however, that the inclusion of Arrears of Revenue in balance to credit at the end of the year was misleading.
A still more extraordinary case is furnished by the surplus of Assets bracketed on p. 1 of this Report. I would strike out the passage in brackets, explaining to the Gov.
HONGKONG.
No. 202.
PRINTED FOR PARLIAMENT
REPORT ON THE BLUE BOOK FOR 1903.
GOVERNMENT HOUSE, HONGKONG, 12th May, 1904.
SIR—I have the honour to submit for your information the following general Report on the annual Blue Book for the year 1903.
1—FINANCES.
The Revenue for the year exclusive of Land Sales amounted to $4,728,692.17, or $398,979.69 more than the previous year. Land Sales amounted to $510,165.71, or $61,195.51 more than in 1902. The total Revenue from all sources was therefore $5,238,857.88, or $337,784.18 greater than in any previous year, and $305,562.88 more than the estimate. All the main sources of revenue show an excess over 1902 with the exception of Miscellaneous Receipts and Land Sales, and all items similarly show an excess of actual over estimated receipts with the exception of Rent of Government Property, Miscellaneous Receipts, and the Water Account. Licences and Internal Revenue not otherwise specified show an excess of $187,836.09, while Fees of Court or Office, &c., and the Post Office yielded over $50,000 and slightly under $30,000 respectively over the estimate.
The Expenditure for the year was $4,746,838.44 exclusive of Public Works Extraordinary; inclusive of that item it was $5,396,669.48, or $512,879.03 less than the total expenditure of 1902. Deducting from the actual expenditure for 1903 the total actual receipts, there was a deficit of $157,811.60 on the actual working of the year, though the surplus on December 31st was $30.83 exclusive of arrears of Revenue.
(a)—GENERAL REVENUE AND EXPENDITURE.
The following is a brief abstract of Revenue and Expenditure for the years 1902 and 1903:
1902 1903 Increase Decrease Light Dues $66,106.52 $74,960.00 $8,853.48 Licences and Internal Revenue not otherwise specified $2,600,520.55 $2,849,936.00 $249,415.54 Fees of Court, &c. $296,709.19 $352,719.02 $56,009.83 Post Office $387,066.19 $414,867.20 $27,801.01 Rent of Government Property $572,286.15 $615,683.01 $43,396.86 Interest $2,003.92 $5,964.73 $3,960.81 Miscellaneous $233,070.49 $178,602.00 $54,468.49 Water Account $171,949.47 $235,900.12 $63,950.65 Land Sales $451,361.22 $510,165.71 $61,195.51 Total $4,901,073.70 $5,238,857.88 Deduct Decrease $115,664.00 Nett Increase $337,784.18The Right Honourable
ALFRED LITTELTON,
His Majesty's Principal Secretary of State for the Colonies,
&c.,
&c.,
&c.
C.D.
21620