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HONG KONG LEGISLATIVE COUNCIL.

possible to make any clear cut distinction between the two and a percentage of a good deal of the expenditure shown under Other Charges is really rehabilitation expenditure in one form or other. Then too, Other Charges are swollen as a result of conditions that are really an indirect result of the war. For example, it has been necessary to increase the provision in all departments affected for such items as fuel, light, uniforms and cleaning material. Honourable Members are only too well aware of the increase in costs which has taken place and in the case of uniforms this is not only confined to the price of material but is reflected in the cost of making up.

Under the Education Vote there is an increase of $1,500,000 in respect of capitation grants. The new Grant Code only came into operation about October 1941 and no provision was made in the 1941 Estimates to cover the expenditure though this was expected to amount to something over $800,000. A higher figure is necessary to-day owing to the payment of rehabilitation and cost of living allowance to the School staffs. Considerable expenditure will also be necessary in respect of passages of teachers returning to the Colony and there will probably be an increase in the number of European teachers in grant-aided schools owing to the more favourable conditions.

The Imports and Exports vote is one of the very few which shows a considerable decrease. This is due to the abolition of the opium monopoly but this saving in expenditure is of course more than offset by a loss on revenue. The not loss in respect of the abolition of the opium monopoly is in the region of $1,250,000.

The Railway Vote is a heavy one. Other Charges and special expenditure together amount to $10,604,038. The increased price of coal and oil accounts for over $750,000 and the increased cost of labour is also reflected in the higher figures. Six million dollars is to be expended on the purchase of new rolling stock. Tools and equipment and the cost of re-laying the track and repairing tunnels also account for considerable sums.

The increase in Personal Emoluments in the Medical Depart- ment is higher than in other departments as not only have they extended their operations in connection with the establishment of Chinese Dispensaries but it has also been necessary for them to take over temporarily the operation of certain hospitals formerly supported by charity. Additional expenditure has also been necessary on the leasing of suitable premises in the New Territories and to replace buildings which have been destroyed.

2 million dollars is being devoted to the purchase of medicines, instruments and bedding. It has been necessary to re-equip the Bacteriological Institute and Chemical Laboratory and such items

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