COPY.
CONFIDANTIAL
Drip, aga. 82818
31
(Room for Public Work)
18.
14.
32
Government llouse,
Hong Kong, 7th August, 1931.
P2808/31
by Lord,
I have the honour to acknowledge the receipt
of Your Lordship's confidential despatch of the 26th
of lay, 1931, on the subject of anticipated loan
requirements.
2. I am glad to say that the financial position
has improved considerably, and may be described as not
unsatisfactory, though the position has been attained
to some extent by deferment of certain desirable works.
The rapid fall in the sterling value of the dollar
early in the year, while causing a large increase in
the dollar equivalent of the Colony's sterling commitments, coincided with an improvement in the
general situation, and I am glad to be able to report
that the conservative estimate contained in the
enclosure to my despatch of the 13th of March can now be reconsidered in the light of the experience of the first half of 1931.
3. The actual deficit in the 1930 Budget proved
to be no more than 301,173, so that the balance of
assets over liabilities on the 1st of January, 1931,
was
THE RIGHT HON URABLE
LORD PAJUFIELD,
&c.,
&c.
&C.