The proposals mate
4
asthing for their observatives on
on pages buy the uncrown to 1 or hitt.
ว
Totiller
7.5.31
This despatch and enclosure paint a
picture of the financial position of Hong Kong
which appears to me utterly unreal. When they
prepared their estimates on the basis of the
dollar equals 1/4a they anticipated a deficit of
$2,299,096 and I pointed out that the Revenue
estimates appeared to be optimistic. The fall
in the dollar to 1/- increased the estirated
deficit to $4,000,000. On 12th January the
Governor telegraphed :-
"The further heavy fall in the dollar to
una er 1/- renders the financial prospect very
serious, and there will be a very heavy deficit
on the year unless there is a considerable rise in silver! (No. 18 on 72821).
The position was so serious that a cut in
officers' salaries to effect a saving of one and
a half million dollars was sanctioned, although
aumittedly, it might be challenged as a breach of
faith. It now appears (see page 9 of enclosure)
that that is practically the only saving that has
been effected, although the excisión
off
or
86 outstanding
or fost fonement
certain unspecified works, may effect a further
reduction of $1,000,000. The Retrenchment
Committee has not yet accomplished anything.
I hear unofficially that its Report on the Public
future Works Department is practically completed,
but we do not know whether any substantial
economies have been suggested, Additional
taxation has been imposed which is estimated to
bring in $1,594,000 (Page 10 of enclosure)
leaving