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HONG KONG LEGISLATIVE COUNCIL.
I confess therefore to some surprise at learning from the Senior Unofficial Member's speech that perhaps
that perhaps the only cause for congratulation is that no increase of taxation is considered necessary.
We have been able to make some provision out of Revenue Account for a new Government Civil Hospital, for several much needed Markets, for a new important Police Station, for Senior Officers Quarters, for improvements to certain Roads, for Anti- Malarial works, for a new Central British School, for important Harbour Dredging work and Reclamation connected therewith, and certain Water Works. From Loan funds we have made provision for other Water Works, including the Gorge Dam at Shing Mun, for a second cross-harbour Pipe Line, for the new Gaol and for certain improvements to the Air Port.
The fact that we have been able to provide for this considerable number of important services is evidence of what may be reasonably termed a strong financial position. It entails, however, our taking a sum of over $1,600,000 out of Surplus Balances, and I confess that I felt some anxiety when considering the commitments involved by these works, having regard to the fact that we cannot look to much, if any, improvement in the Revenue during 1934. This will mean that we shall have to draw further from Surplus Balances to continue the work, and the Budget shows that the estimated Surplus Balances, apart from the City Hall Account at the end of 1934 will be less than ten and a half millions. The prospect at first sight seems, perhaps, a little perturbing. It always happens, however, that with a large personnel many posts are vacant for brief periods during the year, resulting in a considerable saving in the total. This over the whole year will probably amount to several lakhs of dollars. If the dollar continues at or only a little below the present figure, there will be a further considerable saving in the dollar equivalent of sterling commitments. There will also be a falling off in the dollar revenue realised from such imposts as are based on sterling, but this will be much smaller than the amount saved on sterling commitments. There is also a sum to be transferred from Suspense Account in respect of certain amounts which have been held back pending the settlement of some outstanding questions connected with Military Contribution. The determination of the exact figure awaits the approval of the Secretary of State of the amending Ordinance; but it will probably amount to the greater part of the sum entered against "Suspense Account." It is also to be noted, as the Colonial Secretary has pointed out, that we shall have eventually the present site of the Government Civil Hospital and the site of the Naval Arsenal for disposal when the new works are completed. Therefore, even should it be necessary temporarily to reduce our Surplus Balances to some extent, the deficiency would be made good by such disposal. I feel, therefore, that we are on reasonably safe ground in embarking on such commitments as are being undertaken.
With regard to Revenue, the falling off under the heads of Duties and Opium has been somewhat alarming. The estimate of
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