the Comm: to commit itself so far ahead.
3. Any application which may eventually be made
should be based on plans and estimates as complete
as possible; there should be a careful examination
of the probable revenue to be derived from the
works that is a point to which the C D A C
always directs attention) ; and the application
should not include a request for a grant to cover
sinking fund charges--as the Act does not
permit of that.
I feel quite certain that, on the application as
it now stands, there is very little hope of
getting anything from the Fund. Water-works
should, obviously,be on a commercial basis, save
in very exceptional circumstances; and exceptional
circumstances do not apparently exist here.
"The price of water can, if necessary,be raised
to give a sufficient return on capital". If that
is so--and doubtless it is so,for Hong Kong--then
what justification is there for asking the
British taxpayer to pay in order that Hong Kong
may get its water fractionally cheaper? I per-
sonally see none; and I have no doubt that is the
view the C D A C would take. Hong Kong will have
to make out a much stronger case before it is
likely to get anything.
The 8th: October 1930.
to HK Tel 89-
LEATUTE
UNDER PATUTE
Conf. Tel.
24/10
4/10/20 cans 9-10 20
DEST
午
Gov
Replier to (12)
Agrees
to visit
of GOURLEY.
14