42
it has previously been the aim of the
Colony to maintain, but in the present
would
circumstances I agree that it will be
undesirable to impose additional taxation
for the purpose of maintaining this
reserve. The eventual effect of the Sino-
Japanese conflict upon the finances of the
Colony appears difficult to estimate, and
I agree that for the present the Colonial
Government may well draw temporarily upon
its surplus funds should events make this
necessary.
3.
I observe that it is proposed to
continue financing loan works from revenue
pending a further issue of the 1934 loan.
I see no objection to this course, but I
observe that present advances from surplus
already
funds for this purpose amount at the moment
to approximately $10,000,000. The present
surplus of assets amounts to approximately
$12,000,000, and the assets as set out in
the Estimates include the item of advances
bending reimbursements from future loan.
It