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figure is $13,309,801. But this includes two
"windfalls"; the first is a sum of one and a quarter
million dollars from the sale of part of the City Hall
site to the Hong Kong and Shanghai Bank. I am address-
ing you separately regarding a proposal to pay this
sum into a special "Government House and City Develop-
ment Scheme" account. Deducting this one and a quarter
million dollars from the revised estimated figure the
surplus balances are reduced to a little over twelve
million dollars. The other "windfall" is a sum of
eighteen lakhs from the estate of the late Lord Inch-
cape. If this too is deducted it will be seen that
the estimate which was made a year ago of the state
of the surplus balances at the end of 1933 was fairly
accurate. This has, however, only been achieved as
a result of expenditure being more than three and a
half millions less than the original estimate, largely
as a result of the exchange value of the dollar having
been consistently higher than the rate on which the
estimates were based. Revenue, after deduction of the
two windfalls referred to above, falls short of the
original estimate by four million dollars. This
/falling off of revenue which has affected all the
principal heads (except the Railway), is a serious
matter, for it is mainly the result of trade depression
and there are no grounds to justify the assumption that matters will improve next year. A cautious policy is
therefore necessary and this has been adopted. The
Colony has a considerable programme of Public Works
of the first magnitude to which it is already committed
and which will carry over into 1935 and in some cases
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