37

AVERA

but it

increase gives point to the recent suggestion of the

A

General Post Office that only letters, etc., specially parked should be sent from Hong Kong by the Siberian

Houte.

As to the proposed Expenditure on Public Works dealt with in paragraph 11 of the Officer Administering the Government's despatch (A.) (J.) and (M.)

we are

to have later plans of the proposed new 'agistracy, of the Pier opposite the Royal Square, and of the service

reservoir at West Point

{

As to (c), The new Market scheme, exclusive of a proposed resumption, is likely to cost $268,000 of which

we have on the present Estimates only an instalment of

$25,000. But the new scheme will, it is thought, bring in extra revenue to the amount of $750 per mensem.

(1) A seperate and longer account of the

Shakiwan Waterworks Extension Scheme is to be sent

home later.

As regards

Then the Estimates were under discussion in the Council Mr. Hewett, on behalf of the unofficial members, tried to make three main points against the Government as regards current expenditure:

(a)

See Page ff

Council Det

(OAG's spee

P. 85

Paragraph 11 (a) of boy's,

despatch.

The increase in the staffing of Departments; (b) The excess of the actual cost of the big Public Works over the original Estimate;

(c) The increase of crime.

(He also dealt with the opium contribution made by

This is referred to later on).

the Imperial Government.

Of these points we are to have a separate report

Encl. VII ta

34442.

on (c). As regris (a), I think that the statement at the end of enclosure 4 to this despatch afforde a good reply.

As to (b) I dont think that the Director

of Public Works made a really good explanation of all the increases on the Estimates for Post Office and Law Courts. But experience of similar increases in other Colonies shows that it is very hard genera lly to keep within the original limits of expenditure.

On the whole, I dont think that we can usefully criticise any particular items in the Estimates. Telegraph approval, and in despatch sanction the Appropriation Orainance; thank for the explanations; call attention to the items not inserted (see above) and say that the Secretary of

The Gout State will inform him as soon as possible of the contribution which His Majesty's Government will be prepared to allow for opium in respect of 1911 (→ Si F shouldn't have referred to Confidential correspondence in this despatch on the Estimates, but it was somewhat aifficult to avoid doing so).

As regards the loss to the Colonial Revenue

on account of opium, the present position is shown by the letter and Femoraneam on 281 5/10. In brief it is this: The Treasury have granted £9,000 for 1910, and have given no undertaking in respect of 1911 or 1912.

The Colonial Office view is that the contribution of

the Imperial Government should be one half of the loss

caused by the reduction in the rent of the farm in

respect of the years 1910-11-12. The matter has now

been referred to the Cabinet.

The

May

(21.442). Wt.32,696--3, 6000. 2/10. A.&E,W. (26.462).

9058--28. 6000, 6:10

on

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