44
to rehabilitation expenditure during 1947/48 and no
doubt lesser sums will be required in the year following.
As an example, it may be of interest to record that
further expenditure amounting to $10,000,000 will be
necessary on the railway system alone in respect of the
replacement of rolling stock.
10. Such special rehabilitation expenditure can only
be met by further borrowings which will swell the public
debt to a dangerously high figure in comparison with the
Colony's resources. This does not take into
consideration non-official claims in respect of losses
and damage to property amounting to some $740,000,000.
As has been stated on previous occasions this Government
could not contemplate further borrowings at ruling rates
of interest for the purpose of meeting such claims.
Indeed it will not be possible to meet them, even in part,
unless a large measure of assistance from His Majesty's
Government is forthcoming.
11. I therefore trust that it has been found possible
to approach the Treasury in the sense indicated in
38
paragraphs 16 to 18 of my despatch No. 48 of the
24th July. I feel that if the full extent of the damage
which this Colony has suffered is once realised there is
reason to hope that the treatment accorded to Hong Kong
may not be less generous than that already decided on in the case of Malta which this Colony resembles in its
almost entire lack of natural resources.
I have the honour to be,
Sir,
Your most obedient, humble servant,
mark Young
GOVERNOR