13
An undertaking was given to the Select
Committee that certain items of P.W.E. and other
special expenditure could be deferred if the revenue
position showed serious deterioration. It appears,
however, to me that two other factors ought to be
taken into account in reviewing such expenditure
increasing costs and the cash position. of this,
more later.
Both sides of the Estimates contain
-
provision for the Fishery Research Station and Aquarium
for which a C.D.F. grant was approved. This, however,
and approval of the Estimates should
is in suspense; infusper
include a caveat on this subject.
LOAN ACCOUNTS, SURPLUS BALANCES
AND CASH RESOURCES.
Expenditure under the 1934 Loan is being
closed down, the authorised limit being exhausted, and
there has been discussion on 53593/39 about the liquida-
tion, by borrowing in some way the unraised portion
of this Loan, of the heavy advances made on this
account from surplus balances.
Heavy advances from them have also been made
(and it is proposed that they should continue) on
account of another loan, but one of a purely
hypothetical nature. The figures will be found in
Appendix VIC) to the Estimates (p.136) and were
discussed in my previous minute on this file and in
minutes on 53593/39.
The position is that the revenue surplus
balances must already be heavily overdrawn, and will be
even more so by 31.3.41. Presumably the only reason
this 'overdraft' does not cause a shortage of cash is
the existence of various special funds which appear in
Appendix IV to the Estimates (p.133), the principal
of