ancive
7.
85
17. It is proposed to charge the 1936 Loan Works
expenditure to surplus balances in the first instance
pending the raising of further loan funds. It may be
necessary to issue further bonds under the authority of
Ordinance No.11 of 1934 in the near future and as soon as
this becomes apparent I shall notify you immediately.
18.
One of the merits of the Government House and
City Development Scheme is that it can be proceeded with
in stages, and as the work so far done will not be wasted
it has been decided to call a halt until better times, and
there will be no expenditure on the scheme next year.
19.
The speeches of the Unofficial Members of
Council were not unduly critical of Government's budgetary
policy. The accusation made by Sir Henry Pollock that the
Government had acted unconstitutionally in first approaching
you over the matter of a levy on salaries was I think due
to a misunderstanding as to what actually happened, which
misunderstanding has I hope been cleared up as a result of
my speech at the end of the debate on the Second Reading.
Sir William Shenton took a rather more gloomy view of the
future of the Colony, a view which I am sure is not shared
by most of the leading business men of Hong Kong. Dr. R. H.
Kotewall advocated a reduction in taxation, notably the
Assessed Taxes, as likely to stimulate trade, and the
drawing on surplus balances (a view exactly the opposite
to that taken by Sir William Shenton) to cover the lag
before revenue would benefit by the increase in trade.
Both these speeches, as well as the others by the Unofficial
Members, were fully dealt with by the Colonial Secretary
in his reply.
20.