-6-
(/2)
42779/30
for the present taxpayers.
If, as I hope, Your
Lordship will accept these views, I shall be glad if
a telegram may be sent to that effect, for I am most
anxious to proceed with the work at once. I may say that I understand that it has been approved that the
cost of erecting a new gaol and a hospital in Kenya be
charged to a loan.
10. I would refer to Your Lordship's telegram No.4 of the 6th of January, 1931, stating that Your
Lordship does not approve of charging to surplus balances or loan the cost of the proposed
arrangements in regard to the Naval Arsenal. I
venture earnestly to ask for a reconsideration of this decision and for Your Lordship's authority to charge
it to surplus balances.
recovered in a short time by the sale of the land thus
rendered available and it therefore seems inequitable
to raise additional taxation to cover the cost of such
a scheme.
11.
The money required will be
In view of the improved financial position,
and the fact that it is almost certain that the 1931
Budget will be balanced, I have come to the conclusion
that there will be no necessity to resort to a loan this
year, as it will be possible without embarrassment to
continue to advance money for approved loan works from
surplus balances. If the anticipated revenue for 1932 is realized, and there is no abnormal expenditure,
it might even be possible to finance the remainder of
the present approved loan programme without borrowing
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