There should be no difficulty in checking wastage or excessive con- sumption, by water restriction if necessary, in particular districts, and the supply of water can be conserved sectionally, or by districts.

The idea of applying this new principle of water charges only to what may be termed "tenement house districts" has many attractions. But I realise that it would be difficult to work out the amount necessary to compensate the revenue for foregoing the excess water charges in these particular districts having regard to the difficulty of computing the amount collectable as excess water charges from the rest of the Colony.

Burden of New Tax

It may be that my proposal may not be attractive to those who in practice have no excess water charges to pay, but I submit that all should cheerfully accept the burden of the new tax if, as I am persuaded, this is the only solution of an otherwise insoluble problem. I accordingly respectfully commend this proposal to the sympathetic consideration of Government.

The Island Bay Beach, with its undertow, is known to be extremely dangerous, and many fatal accidents have occurred. As it cannot be very expensive to provide for a rowing boat (say on Wednesday and Satur- day afternoons, and Sundays, during the bathing season), with a man in charge to throw in a life buoy when needed, I suggest that this question should be considered by Government. I appreciate that Government gets a certain amount of revenue from the matsheds at Repulse Bay, whereas Government gets no revenue from bathers at Island Bay. But I submit such a small expenditure would be more than amply justified if even one life could be saved.

The maintenance of the happy and cordial relation between Hongkong and Canton has often been referred to in this Council. It is unnecessary for me to dwell on this subject. But may I, Sir, be permitted to say that the Colony learned with pleasure and appreciation of the warm wel- come accorded to Your Excellency and Lady Caldecott, on the occasion of your recent visit, by our hospitable neighbour, and that nothing could be more effective than such a visit, in view of Your Excellency's person- ality and Lady Caldecott's gracious charm, in cementing the friendship and promoting a spirit of mutual co- operation between these two places? Other Matters

I regret the time I have already taken up. There are still

a few other miscellaneous matters on which I desire some information, and, for the sake of brevity, I propose to set out the items in an interrogative form:-

1. On page 14 of the Hon. the Colonial Secretary's Memorandum there is a reference to centralisation of the reception of Press messages in

of Government. the

Will hands Government be good enough to make a statement, for the information of the public, as to the extent and effect of this centralisation, especially in relation to owners of radio sets?

2. In both the new Gaol and the

"a Queen Mary Hospital highly qualified mechanic.. .having the qualifications of a University graduate in Engineering" will have to be appointed to take charge of the boiler installation. What is the necessity for such an elaborate boiler

I installation?

that these posts are open to graduates of the Hongkong University, but I respect- fully ask for confirmation on this point.

assume

3. I understand that the Island is considerable supply of drawing water from King's Jubilee Reservoir

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because, in spite of the fact that the Island reservoirs are full, the existing filtering capacity of the Island is in- sufficient to cope with the demand. If this is so will Government con- sider the suggestion of increasing the filtering capacity on the Island?

4. I understand that the carrying capacity of the aqueduct along the King's Jubilee tunnel is only half of the capacity of the tunnel, and that a pipe with a carrying capacity equal to the tunnel could replace the aqueduct at a reasonable cost. If this is so will Government consider the question of remedying this defect?

5. In view of the mass of legis- lation which has got on the Statute Book since 1923, will Government consider the question of bringing out a new edition of the Hongkong Or- dinances in the near future?

Tribute to Governor

The Senior Unofficial Member has already expressed our appreciation of the Hon. the Colonial Secretary's speech and of the memoranda pre- pared by the Hon. the Colonial Treasurer and the Hon. the Director of Public Works. If in my remarks I have been somewhat critical, I cer- tainly do not wish it to be understood that I am unappreciative of the way in which Government has faced the situation.

On the contrary I wish to say, if I may be permitted to do so, how much I have admired the courage,

industry and statesmanship with which Your Excellency has grappled with the various problems, culminat- ing in the Budget, since your arrival in Hongkong. The decision to resort to surplus balances to meet the deficit rather than to new taxation, which may have a disastrous effect on in- dustry is, as I have stated, very much appreciated. The result of the steps which Your Excellency has already taken, or has in contemplation, by way of effecting permanent retrench- ment, can only of course become apparent with the lapse of time, but I venture to think that what you, Sir, have already done, merits, and will receive, the lasting gratitude of the community.

MEDICAL SERVICES

Mr. Dodwell Critical Of Increasing Expense

EFFECTS OF DEPRESSION

The

Hon. Mr. S. H. Dodwell said: Sir, I have no hesitation in commencing my contribution to this annual field day of the Unofficial members with sincere congratulations to the Government on a Budget which, though it fails lamentably to balance itself, does undoubtedly show a much more thorough appreciation of the damage done to the Colony by the world's crazy policy of economic nationalism, than any of its predeces- sors. There are one or two aspects about it upon which I would like to comment, but first of all I desire to associate myself with the tribute which my Honourable friend, Acting Colonial Secretary, has mod- estly paid to himself and his col- leagues for the share they are tak- ing towards the reduction of the deficit.

the

numerous

It may or it may not be some con- solation to honourable Official mem- bers to know that, as a merchant employer, with a fairly staff, I estimate from my experience that Government servants, when their pensions are taken into con- sideration, are still some 25 per cent.

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to 30 per cent. better off than their opposite numbers in the commercial firms of the Colony, most of which firms, even on this lower salary basis, are still finding it most difficult to operate their businesses without loss.

Secretary of State

I assure honourable Official mem- bers that I do not mention this from motives of jealousy; indeed I realise only too well that not so long ago the boot was on the other leg. I mention it because there are still quite a number of people about bury- ing their heads in the sand and re- fusing to face up to the realities of this depression and its effect on the Colony. No less an august person- age than the Secretary of State would appear to be one of them, and as the Ottawa Agreements expire next year, I feel that it is up to the commercial community to leave no stone unturned in an endeavour to see that he is under no illusion as to how far we can go in this Colony in that somewhat difficult operation of building bricks without straw.

There are two reasons why I sus- pect the Secretary of State in this matter. Firstly, because in 1931, when the tentacles of economic nationalism had already got this Colony firmly in their grasp, and the commercial community had to make their first sacrifice, the Secretary of State intervened and refused to per- mit the Government servants to help And the situation by following suit. secondly, because even to-day he states that he will only agree to this levy if he has an assurance that it

is

an emergency imposition which will not be maintained longer than is demanded by the obscurity of the financial situation.

>

Permanent Cut?

Much as I dislike striking pessim- istic notes, or casting a damper on the spirits of my official colleagues, in my judgment the question whether this levy is in fact an emergency measure or becomes a permanent measure liable to be made still more unpalatable later on, depends en- tirely upon whether or not economic nationalism has come to stay throughout the world. If it has, and Hongkong's privileges and prefer- ences as part of the Empire are to be as limited under the Ottawa Agreements as, in practice, they are to-day, then, so far from reinstating any cuts, I envisage the possibility, if not the probability, of Your Ex- cellency being compelled to request the Secretary of State to take back and absorb in some other more for- ! tunate parts of the Empire, a large proportion of the Government staff now rendering services which the Colony will no longer be able to afford, and consequently will have to do without.

. Such a contingency was fore- shadowed on page 53 of last year's report of the Economic Commission, which has, no doubt, been tho- roughly digested by my Official col- leagues and is still fresh in their minds.

Currency Stabilisation

Happily, however, amongst the many signs of returning economic sanity, we witnessed one last week which may easily prove to be the first rung in the ladder of economic recovery. I refer to the British Government's currency stabilisation negotiations with the United States and France, the announcement of which was accompanied by the fol- lowing significant statement:-"The British Government is convinced.

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