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HONG KONG LEGISLATIVE COUNCIL.
is not the first time that it has experienced, not a set back, but a halt in its progress. I share Your Excellency's confidence and I am sure Honourable Members do so too, that it will not be long before we are not only back where we were prior to the outbreak of the strike and boycott, but advancing far beyond. But until that time comes we must be content to hold firmly on to what we have got, and to restrain ourselves from any undertakings which would jeopardize our financial stability when we wish to take the next big step for- ward. Consequently the present budget has been framed on the most conservative lines possible. Economy has been our watchword in framing it, and, however much we may have wished to proceed with eminently desirable works, we have decided that for the present we must cut our coat according to our cloth, and I am afraid it has resulted in a somewhat tight fit. In accordance with our policy of maintaining our estate and a very fine estate it is at the highest possible efficiency we have left our Administrative and Protective Services at full strength, and have even increased them in some minor particulars, eg., in the Clerical and Accounting Staffs, in the Harbour, Police and Medical Departments and in the Defence Corps; and we have allowed a small increase for education, a matter of great importance, and in Public Works Recurrent Votes for main- tenance. There is a reduction of nearly $32,000 in Public Works Department Personal Emoluments. After providing for the full main- tenance of all the essential services we were left with a certain sum of money for Public Works Extraordinary and the first items to be provided for were those works in progress which could not be abandoned or delayed without serious loss. The small sum of money left after provision had been made for these works has been devoted to some of the most urgent of the minor works which are awaiting
attention.
It would, of course, be possible to increase taxation and so to raise sufficient money to pay for some of the works we have felt obliged to postpone. But it would be unwise to lay additional burdens on the community just when trade is beginning to pick up. It must be our first duty to foster that recovery by every means in our power. Consequently with two small exceptions to which I shall refer later it is not proposed to alter any of the existing sources of revenue. We have not, however, overlooked the possibility of pro- ceeding with works of development by means of a loan and I shall at a later point in our proceedings this afternoon move the first reading of a Bill authorizing the provision of a loan of $5,000,000 to carry out the Shing Mun Water Scheme, the Harbour Dredging and the Colony's share of the Kai Tak Aerodrome. It must be remember- ed, however, that nearly $2,000,000 of this amount is required to pay back to our balances sums already expended on the waterworks scheme. This sum is expected to be available before the end of this year and is duly taken into account in considering the money avail- able for exuenditure next year.
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