3.
or in other Colonies which close their accounts at dates
other than 31st December.
5.
I have consulted the Hong Kong Chamber of
Commerce, who see no reason to object to the suggested
change, and the unofficial members of both Executive and Legislative Councils, some of whom definitely favour it,
while the remainder express the view that they would see no objection if it would be of greater official convenience.
6.
I have, therefore, to inquire whether you are prepared to approve in principle a change from 31st
December to 31st March.
7.
If this is approved in principle the question
will arise of how the transition is to be effected.
It
would be possible either to have an interim three months'
budget for the period 1st January to 31st March 1940, or to have a fifteen months' budget from 1st January, 1940,
to 31st March, 1941. A fifteen months budget has the
disadvantage that it would inevitably be very difficult
to foresee all the probable contingencies in such an extended period and there would probably have to be a considerable number of supplementary votes to meet expenditure which could not have been allowed for in the original estimates. On the other hand a three months' budget has the disadvantage of involving the preparation and printing of two complete sets of estimates within a few months of each other, and although an attempt might be made to render the interim budget as non-controversial as possible and so to shorten discussion on it, there would have to be some debate. Moreover its non-controversial and interim character could probably only be preserved by excluding from it provision for new services and new public works, which it might be very undesirable to postpone for a further three months. On balance, therefore, I should favour the fifteen months budget as the method
of transition.
This would involve the submission to you