11.
86
the
approach the Treasury on the subject of a free grant, expenditure on rehabilitation and reconstruction during the first two years should be taken into consideration in addition
If the Treasury are prepared to to actual damage to buildings. consider sympathetically the question of a free grant they could not presumably reach any decision regarding a figure until the report of the Claims Commission has been received. If however they are prepared to take into consideration rehabilitation expenditure as well as actual damage to buildings they might be prepared to treat the whole or part of this year's deficit as an advance against any sum which they are prepared to recommend to Parliament as a free gift on the part of His Majesty's Government towards the rehabilitation of Hong Kong.
Such action would contribute very notably to the
If complete recovery can rapid rehabilitation of the Colony. be achieved in a very short space of time Hong Kong can look forward with reasonable certainty to a period of prosperity. But if the money required to finance rehabilitation comes forward too slowly or in insufficient quantity the position will be very different. The commercial community are not allowing any uncertainty as to the future status of the Colony to interfere with their short term plans but they will not sink money in long term projects unless they are convinced
A free gift would that recovery will proceed without a check. not therefore only be of benefit to the Colony.
18.
I am convinced
that it would operate indirectly as a very potent factor in the restoration of British Trade in the Far East.
Needless to say
any such gesture on the part of His Majesty's Government besides