2.
74
that date as shown in Appendix II of the Estimates for 1934 was $13,309,801. Savings in expenditure, largely due to the higher rate of exchange, had more than counterbalanced the decrease in revenue and the financial position was consequently
The estimated expenditure better than had been anticipated.
From
for the current year including $100,000 in respect of the Government House and City Development Scheme was $33,442,695 and the estimated revenue $31,731,625. The revised figures are Expenditure, $30,893,000 and Revenue, $29,670,634. these figures it will be seen that it is anticipated that by the end of this year the surplus balances will be reduced to $12,601,259 and that revenue will have fallen more than $2,000,000 below the estimate for 1934.
4. The fall in revenue has been general except in the case of the Kowloon-Canton Railway which appears to be entering upon a period of prosperity provided conditions in China do not deteriorate. The duty on liquor and tobacco has been practically maintained but the revenue from the opium monopoly is again down due largely to the unpopularity of Singapore opium and the effect of the trade depression upon the sales of Kamshan opium. The seriousness of the depression from which the Colony is suffering is clearly reflected in the decline in Land sales. 1 referred in my despatch No.470 [6] in
33824 of 31st August, 1934, reporting the appointment of a Commission
34
of enquiry, to the very serious deterioration which has taken place during the past two years in the trade position of the Colony. If the depression continues there is no prospect of the revenue figures improving during 1935. The estimated revenue for next year is $30,585,650. That figure includes, however, a windfall of nearly $1,000,000 in respect of the transfer to the revenue for next year of the accumulated payments amounting to $975,410 made by this Government for
1
h/w
twelve