C.!

H.

53558/39

2

Extract from M.K. Hansard of 18.10.38

2. Gov.

sust (2)

2·2·59

Jubrite oboons, on

Loving conditions

It is, I think, quite clear that any

comprehensive Housing Scheme for Hong Kong will need

to be accompanied by some scheme designed to make

available large areas of suitable land in the

central part of the City. As an example, a

proposal has already been mooted (it is yet in its

very elementary stages) for removing the military

from their present sites in the central areas.

The attempt to finance such a scheme by

the raising of a loan would not, I should think, be

entirely satisfactory, since it would mean that

Government could only undertake schemes likely to

prove remunerative;

whereas it might be desirable

from a social point of view to embark upon schemes

which are not likely to prove sufficiently

It

remunerative to bear loan charges. And in any case

most of the schemes would only show returns from

land sales, etc. over a fairly long period.

therefore seems desirable to have available a

large fund for meeting initial expenditure

raised if possible by other means than a loan.

For this reason the Governor suggests

utilising part of the income, and if necessary part

of the existing surplus also, of the Exchange Fund.

The present surplus of the Fund stands at somewhere

about $20,000,000 and in June last showed an

"excess"

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