Oniy on 7450/29 hand
Telegram from the Governor of Hong Kong to the Secretary of
State for the Colonies.
44
142
Dated 2nd.October, 1939. Received 2:15 pan. 2nd. October, 1939.
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2539
2.
No.324 Confidential.
Your circular telegrams Nos.54 and 62 Confidential.
05662/1/39
Estimates for 1940 - 1941 were drafted largely before the
war and assumed the continuance of current conditions locally:
that
balanced
they provided or revenue and expenditure approximately " at nearly
Las
人
as nearly as $50,000,000 for 15 months period. Normal provision
made for existing recurrent services $44,500,000; special expenditure
and now services ₫2,200,000 including Air Raid Precautions, increase
in Police, Medical and Sanitary Services; and Public Works
extraordinary $5,500,000 [as] including road development and
commencement of Infectious Diseases Hospital, Health Centre and New
queens College. Provision for new Government House totally suspended
Ifeel that possible effects of sub-joined proposels would be to
convert small deficit of the ordinary budget into surplus of between
1 or 2 millions.
Even if part of Public Works extraordinary and new
services are deleted, which I should prefer to avoid and allowing for
strict economy generally new demands for war services are likely
to cause an increase of expenditure on balance. At the same time
there may be a diminuation of existing sources of revenue. I
consider however and believe it to be the opinion of responsible
members of the public that Hong Kong should offer at once substantial
increase in assistance to His Majesty's Government in war expenditure
and that the present low level of taxation should be raised according
ly.
I accordingly request your approval to submit to
the Legislative Council the following financial proposals:
1