5.

33

mon

it, I think, unnecessary for me to enter upon a detailed

explanation of the items in the Budget.

Your Lordship will, I feel sure, approve of

the steps which have been taken to strengthen the Medical

Department, especially on the preventive side, to encourage

aviation, a matter on which I shall address you further in due

course and to re-establish the Statistical Branch of the

Imports and Exports Department.

The very careful consideration given to the Budget and the comments thereon expressed by the unofficial

members lead me to the conclusion that with the exception of

the question of the Hong Kong Royal Naval Volunteer Reserve, there is in fact no serious difference of opinion between

this Government and the unofficial members upon general

questions of policy and that such differences as arose are chiefly differences of opinion upon questions of priority of

certain works. The ready acceptance by the unofficials of my undertaking that expenditure on the disputed items under

the heads of the Harbour Department and the Prisons should

not actually be undertaken without further reference to and

consideration by the Finance Committee, indicates a loyal

and conscientious attitude, which I highly appreciate.

11.

Your Lordship will observe that I have

ventured to assume Your Lordship's approval for the raising of a loan at an early date for Waterworks and Aerodrane

expenditure, this having been settled policy ever since the Aberdeen Water Scheme was approved. I, therefore, felt justified in budgetting for an expenditure, which, though greater than the actual revenue anticipated, is yet well within the total resources of the Colony's finances. to be remembered that, since the troubles of 1925, the

It has

I

Government

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