1441
is to repay the 6 per cent. 1927 Public
Works Loan, which, however, need not
be paid off until November 1938 unless
a new loan can be raised at lower rates.
Another $5,000,000 is required to reim-
burse to surplus balances the sums advanced
for loan works. When, as a result of
refund, further money from surplus balances
is available, I should like if possible to
see expenditure on the new gaol, which is
to cost $4,500,000, charged to surplus
balances rather than to loan, though I
agreed with some reluctance to its
being made a loan charge. My general
view is that, in the case of an
"established" Col ony such as Hong Kong,
non-productive expenditure on such
hospitals,
items as gaols, schools, court-houses, etc.,
should be charged against revenue and
not against loan monies. In the absence
of major calamities greataelyems, the
ideal
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