5.

83

4/53562/35

11 / 3019!!

Geal.

due to decreased sales of Government opium, 'Water Excess

Supply and Meter Rents' (page 8) is down for the reason

given in paragraph 3 of this despatch, whilst the reduction

from $273,000 to $134,000 in 'Kowloon-Canton Railway

Auxiliary Operations - Foreign Haulage' (page 10) is caused

by the Chinese Section of the Railway doing their own hauling

as from 1st May next.

10.

The

On the expenditure side there is little that

is new that has not already received your approval.

reasons for the increases in the Police Force are fully

explained on page 14 of the Colonial Secretary's speech

at the first reading of the Budget. In connection with

the increases for the Trade School under the Education

Department, and the new post of Professional Assistant

for the Royal Observatory I would invite your attention

to Sir Thomas Southorn's despatches No.429 of 16th July

and No.474 of 17th August, 1935, respectively. To both of

these items of expenditure the Colony is more or less

committed. There are only small increases in the Medical

Department, which has expanded considerably during the last

few years, as the present is not the time for undertaking

new obligations on the part of Government. The Colony may

in fact regard itself as fortunate that it has not yet had

to cut down on its social services.

11.

'Public Works Recurrent' has been reduced by

$143,100, whilst 'Public Works Extraordinary' contains no

new items of any magnitude for the reasons I have already

given. As explained in the Colonial Secretary's speech at the First Reading it is not proposed to put officers on to the permanent establishment on the expiry of their existing agreements, but, if still required, to retain them on a

temporary

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