16

whose completion or initiation during the financial year is not absolutely essential may be eliminated

or postponed. Later in the year it might be found

possible to restore them, or transfer them to

P.W.E.

I would also suggest a somewhat similar

line of action with regard to P.W.E. itself, special expenditure, and such increases of staff

While these could be as are dependent upon them.

approved as they stand, we could stipulate that this was on the understanding that they shall be reviewed in the light of rising costs, that the

initiation of any which can be postponed should

await that review, and that even then, whether

items whose the ordinary revenue falls off or not,

cost or, in the case of works, total estimated cost, is the equivalent of $7,000,000 (i.e. approximately half the difference between the revenue for 1938 and that estimated for 1940/41) less any savings made in Appendix VIc, should be further postponed until cash solvency, is assured by the successful collection of additional

emergency revenue and, if necessary, by the borrowing of the balance (or part of it) of the 1934 Loan. It would be necessary to ask that social services should not suffer unduly from this

delay.

In paragraph 8 of (2) the Governor asks for a reply by tel. as to approval of the

15 Lite has

Estimates and, presumably, the resolutions. now sent a reminder]. ?This can be given, subject to the last two

paras above and the reservation about Fishery

Research.

The Waterworks Renewals Fund

expenditure

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