11
other hand it may make a great deal of difference
to the Colony whether it lands itself in
expensive dredging or not, and whether in
attempting to improve the harbour, it does harm
as well as good.
There will be plenty of time for the Consulting
Engineers to go into these problems long before
the contract for the first 1,000,000 cubic yards
has been completely carried out.
Meanwhile we must get on with the
discussion with the Air Ministry on the cost of
this work. I think it is clear that in present
circumstances Hong Kong ought not to be called
upon to borrow money for expediting defence
works required by the general situation in
China.
Hong Kong can only balance its accounts for the
year 1927 by transferring the Shin Mun Water-
works from ordinary expenditure to loan accounts
and a deficit for 1928 seems certain. It will
be seen that the Governor expects the present
crisis to be followed by a period of slack trade
when it is over and it is far from over yet.
Clearly then Hong Kong can only pay for this
work by borrowing.
-
Hong Kong has had to borrow £1,500,000
to meet the trade crisis and avert commercial
ruin, and this has been done with no aid from
His Majesty's Government. Apart from this
£1,500,000 the Colony's total indebtedness
is £1,800,000.
Hong Kong has exhausted her large
balances