HONG KONG LEGISLATIVE COUNCIL.

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H.E. THE GOVERNOR.—The position with regard to the second section is that the scheme has been submitted to the Consulting Engineers, and two members of the firm have been out and have approved of it. The question was referred to the Secretary of State in the first instance, and it was held over temporarily for that report. He expressed some views on the subject as to whether we could afford the total cost. It is a very expensive scheme but I strongly pointed out, in a dispatch which included reference to the gaol, that not only was it an essential work, vital to the Colony, but that I considered our financial position was amply good enough to permit of the scheme being proceeded with at once.

In the telegram in which the Secretary of State approved of the gaol being paid for out of loan funds, he merely stated, with regard to the second section of the Shing Mun scheme, that we must wait a little until he had seen the Consulting Engineers' report. I assume, therefore, from that, if the second report is favourable, we shall be empowered to proceed with it.

HON. SIR HENRY POLLOCK.-Thank you, Sir.

The resolution was carried unanimously.

KAI TAK AERODROME.

THE COLONIAL SECRETARY moved:-

"That this Council approves of the expenditure of $34,000 on the Kai Tak Aerodrome hangar during the financial year 1932 which sum shall be met from a future loan and shall meanwhile be charged as an advance from the surplus balances of the Colony."

THE COLONIAL TREASURER seconded, and the resolution was carried unanimously.

ABERDEEN VALLEY WATER SCHEME.

THE COLONIAL SECRETARY moved :---

"That this Council approves of the expenditure of $347,000 on the Aberdeen Valley Water Scheme during the financial year 1932 which sum shall be met from a future loan and shall meanwhile be charged as an advance from the surplus balances of the Colony."

THE COLONIAL TREASURER seconded, and the resolution was carried unanimously.

SHING MUN VALLEY SCHEME,

THE COLONIAL SECRETARY moved :-

"That this Council approves of the expenditure of $20,000 on the filters in connection with the Shing Mun Valley Water Supply

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