See (9) 92639/52
6
Department, is about the same as last year, but the
present expenditure includes over $46,000 transferred
from the Cadet Service and Junior Clerical Service
heads. On the other side, the higher rate of
exchange alone accounts for the decrease of over $161,000. Capitation grants are placed at £37,500
more than last year.
The programme of Public Works calls for no
special comment at this stage. Of the larger works
in prospect, it has been decided to give priority to
the Government Civil Hospital, the Central British
School, and the Kowloon Hospital. In the event of
an adverse movement in the exchange, the Public Works
programme will be slowed down or abandoned as necess-
ary. It is particularly noted that work on the
first section of the Kowloon Tsai Garden City
development scheme, for which $100,000 is provided
under Item 99 of Head Public Works Extraordinary,
will be treated in this way if necessary. The
estimate of $1,525,000 for loan works expenditure
in 1933 on the Gorge Dam of Shing Mun may require revision when the Resident Engineer arrives. We haul not yet approved the charging to Loan of the Tytam Tuck later waters so for as I can see
We have as yet no information as to what,
•
if any, steps are to be taken in the near future for
the raising of a loan. At the beginning of this year it was expected that a local loan would be
raised during this autumn, but this has not yet
proved to be necessary. Ine meantime, loan works
continue to be financed out of surplus balances
in which we took objection to the financing oflongterm works pran pending the issue of a loan. temporary money!
see (9) 92639/32
We have no information yet, either, as to
the intentions of the Hong Kong Government regarding
redemption
the cenrolcion of the 1927 6 per cent Public Works
abouts in this case
loan. The difficulty of convarpien to a lower rete
is of