Enclosure No. 4.
5.
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34
independence of the Water Accounts and also provides a sounder financial basis for future capital renewals. At the same time
it involves some immediate loss of revenue
on general account.
In spite of these modifications proposals were still opposed by the three Chinese members of Legislative Council but their opposition was not
I supported by the other unofficial members. enclose for your information newspaper cuttings reporting the debate at the second reading of the Waterworks Bill on the 15th September, 1938, in which is contained the statement of the reasons for this
opposition and the reply made on behalf of the
Government.
6.
It was found necessary to amend the Bill
in Committee on certain minor matters of administration and drafting and it was finally passed on the 13th
October.
7.
The draft estimates for 1939, copies of
which have already been forwarded to you, have been framed on the basis of the revised proposals and Waterworks departmental expenditure and expenditure on maintenance are accordingly being shown under a special Head "B" of the Public Works Department. It is proposed for the present to charge all new capital expenditure on Waterworks to Loan Account and provision is being made accordingly in the draft estimates. The estimates contain in an Appendix
statements showing the estimated revenue from water