2
428
Engl.No.2amended estimates.
Encl.
No.3.
Encl. No.4
A copy of this speech is enclosed. Two
noteworthy additions have been made, namely, provision to the
extent of $10,000 for a grant to the British Fund for the relief of Distress in China and an increase of the grant to the University
of Hong Kong from $355,000 to $455,000. The latter has been made in response to pressing representations from the University Authorities who find that the University's income has been so seriously reduced by the collapse of the value of its investments in Shanghai as to hinder their plans for the expansion of the
activities of the University. Items which have been å eleted or
reduced are the provision for the building of a new Lighthouse
Tender for the Harbour Department, for a new block of offices and
quarters at the Central Police Station and for the proposed
Infectious Diseases Hospital at Kowloon.
4. The estimated deficit of $7,553,776 shown in the draft estimates as presented on 16th January, 1941, has been reduced by the above-mentioned changes to $3,356,715. It has been explained to the Legislature that if revenue falls short of expectations or if, as may well be the case, it becomes necessary to imur expenditure at present unprovided for in the estimates it will be possible to defer action on certain items of public works extraordinary and to curtail other special expenditure.
5.
I have accordingly to request Your Lordship's approval of the estimates for 1941-42 as passed by the Legislative Council
on 20th February, 1941. I have also to ask Your Lordship's approval of the resolutions, of which copies are enclosed, passed by the Council on the same day; these resolutions authorize loan expenditure and the new or additional duties referred to in paragraph 2 above. Expenditure out of the waterworks Renewals and Improvements Fund is now for the first time authorised in the Appropriation Bill instead of by resolution; this expenditure is
estimated at $832,000 for 1941-42. In addition I enclose for