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HONG KONG LEGISLATIVE COUNCIL.

The following schedule contains the estimated expenditure under the two former heads over a twenty-four months period.

Expenditure

Head

Annual Rate Two year Basis

$

$

1. WAR REVENUE DEPARTMENT

400,000

800,000

2.

EXCESS WAR EXPENDITURE

(i) Volunteer Forces

969,600

1,939,200

(ii) Censorship Department

347,200

694,400

(iii) Internment of Enemy Aliens

109,600

219,200

(iv) Department of Information

35,200

70,400

(v) Shipping Control Board

9,600

19,200

(vi) Food Control

76,000

152,000

(vii) Miscellaneous

24,000

48,000

1,971,200

3,942,400

Given a revenue of $12,000,000 there would remain a balance available for the construction of ships to be presented to His Majesty's Government of $8,057,600.

At the moment, however, Government's intentions in that direc- tion do not exceed $5,000,000, thus leaving an ample margin for faulty estimation, short collection or, it may be, further gifts in cash or kind. Those intentions are to build two minesweepers and four harbour defence craft for the Royal Navy and two ferry tenders for the Army. It will be appreciated that it is impossible at this stage to give further details as to individual cost: tenders will be called for as soon as possible.

Application will be made in Finance Committee after this meeting for a supplementary vote to cover the estimated expenditure which I have just described. The figures in the schedule which will be put before the Committee will not correspond exactly with those which I have given, however, as for the most part they will be on a fifteen months basis, which for the sake of greater intelligibility I have avoided in this statement. (Applause).

THE COLONIAL SECRETARY seconded.

HON. SIR HENRY POLLOCK.-The Unofficial Members of this Council support this motion.

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