5

ex

thri Iwe not say

ING.

A loan to the lumere Section for purchase frolling stack has been approved

principle on 13867/33

× 13784/33

As regards the question of transferring

the cost of the new Gaol from loan to surplus

balances, which the Governor discusses in

para. 5 of (2), I think we can accept for the

present his recommendation that such transfer is

not possible. I suggest, however, that we might

express the opinion that the Hong Kong Government

ought not entirely to put out of mind the

Dossibility of eventually making such transfer,

for, as pointed out in para. 7 of (15) on 82850/31,

Productive

We might

this expenditure is not remunerative

point out that the Governor is proposing to keep

in mind a similar transfer in the other direction

in the case of the harbour dredging.

I think we might say that the Secretary

of State is glad to note the decision to pay for the

harbour dredging out of revenue.

It is satisfactory that the Hong Kong

Government now finds itself able to make a start

with the formation of a local R.N. V.R. Unit.

As regards revenue, it is satisfactory

to observe the successful results of the operation

of the British section of the Canton

Railway.

-

Hong Kong

As regards loan works, the second cross

harbour pipe line is an essential part of the

Shing Mun scheme. The existing pipe line is

already over-loaded and is quite inadequate to

carry the further supplies of water which will soon

be available. I think we should approve the

expenditure proposed in Appendix V(B) (i.e.

$375,000, of which 323,000 is to be spent in 1934

and the balance in 1935)

Wireless Telegraph

that

which as explained in (14) on 13784/33

13784/33 Station more than the amount already approved in (13) on fill owing

to the fact that executive & administrative

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