2
100
As to the actual substance of the
position in Hong Kong, I think that perhaps
the figures as presented in the Governor's recent telegram may have given too startling an impression of the calls likely to be
made on H.M.G. One important conclusion which emerged from the discussion just mentioned was that much the greater part of the special expenditure is really more
appropriate to be included in a loan
schedule than as special expenditure in the ordinary annual estimates and that provided the Treasury are prepared to contemplate the issue of a loan in London if it cannot be raised locally (which it is still the intention to do as far as possible) there should be no difficulty about securing temporary advances against the future loan from the Crown Agents so that issues from the Exchequer in respect of this expenditure will, we hope, not be necessary. On the basis of this plan of action, there is no need, therefore, to reconsider the estimate
already presented to Parliament. As to the
more distant future, revenue seems to be
coming in fairly well and if the local
government act on our strong exhortation to increase taxes, it is not too optimistic to
look forward to the budget being balanced so far as ordinary current expenditure is
concerned inside a year or two.