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Ceputo CA. 11.
No. 166.
210
53652
36
RECEIVED
A 1938
C. O. REGY
GOVERNMENT HOUSE,
HONG KONG.
1st March, 1938.
بی
Sir,
I have the honour to acknowledge receipt of
q your despatch No.7 of the 12th January, 1938, conveying
your general approval of the estimates for 1938.
2.
In paragraph 3 of that despatch, in discussion
of the proposal to continue financing loan works from revenue pending a further issue of 1934 loan, you have drawn attention to the fact that at the time the estimates were submitted it appeared that at 31st December, 1937, $10,000,000 of the anticipated surplus of $12,000,000 would be advanced in this way and that if the anticipated deficit of $3,000,000 for 1938 were realized this method
of financing could not be continued; in these circumstances you have requested that consideration should be given to
the possibility of making a further issue of the loan. The present financial position is much more
万
favourable than was expected when the estimates for 1938
were framed. It was then impossible to foretell the effect on the Colony's finances of the Sino-Japanese hostilities.
Temporarily the Colony appears to be
profiting by the unfortunate events in China and something in the nature of an artificial war boom is being enjoyed. Although ordinary trade with China is much disturbed, the special war demands and the interruption of cha nnels of
THE RIGHT HONOURABLE
.G.A.ORMSBY-GORE, P.C., M.P.,
&c.,
&C.,
&c.