73

Whether these anticipations will be affected by recent events

in China it is impossible now to forecast. The new form in

which these estimates are presented has been adopted on the

recommendation of the Chief Resident Engineer as being that

generally in vogue and in use on the Chinese Section.

12.

In framing the Budget for the coming

year I have estimated for a deficit of $175,190 or in other

words for the payment out of surplus balances of half the

emount` (8350,000) expected to be spent on the Typhoon Refuge

during the year. This course is in accordance with the method

approved for the financing of this work.

13.

I shall be glad if approval of these

Estimates may be signified by telegram.

14.

I am addressing you in separate des-

-patches on the subject of the administration of the Public

Torks Department and of the amount of the Imperial contribution

on account of loss of opium revenue as requested by the Un-

-official Members of Council during the debate on the second

reading of the Appropriation Bill. I shall also deal separate-

f

-ly with the criticisms of the Honourable Hr. E. A. Hewett in

regard to the Statement of Assets and Liabilities, and the

other

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