ކކ

See para. 5 of

5.

+

a

local dollar loan

pes. Wanking

me

Lalance @ 10% - Kay 3 mills. Shows ?

21/12/27

are

14

they were not shown in the figures in the present

Estimates. The estimated expenditure on these two

disasters amounts to over $600,000, and will reduce

the estimated surplus of assets at 31.12.28 to nearly

$8,000,000.

3. The large programme of public works which the

Colony has undertaken over the last few years is now

nearing completion. The fall in expenditure is set

off to some extent, however, by the cost of the new

waterworks which will now be necessary, and increased

expenditure for maintenance under Public Works

Recurrent which had been postponed during the

depression.

4. At present a number of public works are

being financed out of revenue pending reimbursement

X from a further issue of the 1934 loan. Of the

$25,000,000 which was authorised, $14,000,000 has

already been issued. It is estimated that at 31.12.37

$10,324,414 will have been advanced from surplus funds

against the outstanding $11,000,000 which can still

be issued. It is proposed at the moment to continue

with this method of finance. As these advances from

revenue can be met at any time by a further issue of

the loan (though the terms of this may not be

advantageous, of course), the position is not

unsatisfactory, but from the figures shown in these

Estimates Hong Kong would appear to be working on a

very narrow margin. The present surplus of assets

amounts to approximately $12,000,000, but the figures

for assets include the $10,000,000 which has been

advanced pending reimbursement from the loan. This

latter sum will increase, while it is estimated that

the surplus of assets will fall by the end of 1938 to

approximately $8,000,000 or $9,000,000. I suggest

that we should ask for further information on this

point from the Colonial Government.

5.

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