15
A third reason for caution is the possibility
of a collapse of the revenue.
The "future loan" schedule
is tending to be
regarded as a convenient way of financing any kind.
The
The
of capital expenditure which it appears inconvenient
to include in the ordinary Estimates.
Governor has twice given hints of this, to my
knowledge: once in connexion with the barrack-
removal scheme and more recently in connexion
with the Fishery Research one. Appendix VIC,
therefore, needs to be watched very closely.
waterworks items in it increase as to their total
estimated cost at each appearance of this Schedule,
and some of them have more than doubled in a year.
Further increases are inevitable now that freights
and costs of materials have increased.
also there has been added an unexplained item for
aerodrome extension which is admitted to involve
very heavy ultimate expenditure, though the initial
investigations will only cost $60,000.
Now
The
In the circumstances I feel that a brake ought
to be put on Appendix VIC, however urgent the need
for increased water supplies to Hong Kong.
alternative would be to ask for this expenditure
to be restored to the main Estimates, but as we
have already agreed to the present procedure, this
might appear somewhat inconsistent on our part.
suggest
I should be inclined, therefore, to withholding
approval for the Loan Resolution in enclosure 3 to
for a review of the items covered by
(2), and askif
it in the light of rising costs and the need for
conserving the cash position, so that any works
whose