*7
becomes necessary, is a convenient and possibly
economical procedure.
The Resolution in the Council to
authorise the necessary expenditure up to the end
of next year is being taken today in Hong Kong.
The bulk of Hong Kong revenue is obtained
from
(a) Property assessment (akin to local rates
in England)
(b) Land sales
(c) Liquor duty
(a) Opium sales.
(b) and (d) have been "disappointing" in the last
two or three years. But none of these sources
should obviously suffer from the present
disturbance as far as the present and immediate
future are concerned.
As regards the trend of the cost of
local borrowing, we must rely on the financial
Secretary in cooperation with the principal
pri
banking corporations to keep an eye on the position
with a view to taking the opportunity of an early
issue of the balance of the 1934 Loan, should it
be necessary to raise cash by that means and to
reimburse the Colony's balances.
The amount of the vote to be taken today
to meet the expenditure up to the end of 1938
(subject of course to the approval of the Secretary
of State in due course) is a matter on which we
are not informed.
The expenditure up to the
end