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HONG KONG LEGISLATIVE COUNCIL,
We depend, Sir, for our prosperity now as ever on peace and prosperity in China and particularly in South China; the removal of the chief seat of trouble further North has resulted in a slight alleviation of our difficulties here, but our own clouds cannot roll away until the horizon in China once more becomes clear and serene. It is the earnest hope of every well wisher of Hong Kong and of China alike, and this Government numbers itself among the well wishers of both, that that happy event may be consummated at no distant date.
Before closing my remarks I should like again to express my indebtedness to Heads of Departments generally and especially to the Colonial Treasurer and his Assistants, and to my staff in the Colonial Secretary's Office for the willing help they have given in the pre- paration of the Budget, and not least to Your Excellency for the personal interest and advice with which you have assisted me throughout.
I now move the first reading ofa Bill intituled, "An Ordinance to apply a sum not exceeding Seventeen million four hundred and fifty thousand one hundred and three Dollars to the Public Service of the year 1928."
THE COLONIAL TREASURER seconded, and the Bill was read a first time.
LOAN OF FIVE MILLION DOLLARS.
THE COLONIAL SECRETARY said-I rise to move the first reading of an Ordinance to make provision for a loan of $5,000,000 for the carrying out of certain Public Works.
I have, I think, already dealt sufficiently fully in my remarks, when introducing the Budget at an earlier stage of this afternoon's proceedings, with the causes which have led the Government to a decision that the Colony can no longer finance expensive schemes, largely intended for the benefit of posterity, from current revenue and surplus balances. We need our revenue and our remaining balances for our current needs. I have also given sufficient details of the works for which it is proposed to utilize the loan now under consideration, and I need not repeat them here, but I might emphasize the fact that, of the amount set out in the allocation for Water- works Development, a sum of $1,916,406 has already been expended from our surplus balances, and will be at once restored to those balances as soon as the loan is floated. This procedure was fore- shadowed by Sir R. E. Stubbs when he introduced the Budget in 1925. The technical details of the bill are explained in the statement of objects and reasons.
The question of the kind of loan to be floated was very carefully considered by the Governinent. It was found that with the repayment of the $3,000,000 War Loan there existed a very definite desire for a local Dollar Loan, and the Government has every reason to believe
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