(38).
1
54126/1/46.
144
labour, building and repair costs generally are working out a much higher figure than seemed likely six or eight morths ago. They are now slightly more than four times the pre war cost (see my savingram No.126 of 15th March).
ܵܐ
10 on
on 542/6/47.
Practically all items to be financed from loans during the coming year represent replacements and repairs which have become necessary owing to the fact that the territory has been occupied by the Japanese. The few exceptions are some agricultural items which are in the nature of development, and amall amount for the extension of water mains to provide for buildings replacing those destroyed but not on the same sites. A sum of 8394,300 has also been included for the continuation of preliminary investigations into work on the Tai Lam Chung Scheme 360 my savingram No.265 of 10th October, 1946), but the question is under consideration whether application should be submitted for the cost of this work to be met from Colonial Development and Welfare Funds.
5. It seems clear that, in the absence of any grant from Imperial funds (ay despatch No.48 of 24th July, 1946, paragraph 17) it will be necessary to resort to further borrowing, but it is difficult at the present juncture to express any definite opinion as regards the maximum figure to which this Colony could with prudence issue a further loan. There should be some decreases in other charges next year as stocks of consumable etores will have been built up and various types of expenditure such as on uniforms will be limited to an annual issue. There is also hope of some reduction in electricity charges. It might be possible to provide additional funds for service of a further loan, but much depends on whether any slump develops and, in any case, it seems extremely doubtful whether it would be possible to contemplate a further loan of sufficient magnitude to meet the whole of the remaining essential rehabilitation expenditure.
6. Unfortunately, financing of rehabilitation expenditure is not the only problem with which this Government is faced. To provide adequate water supplies for the increasing population, completion of the Tai Lam Chung Reservoir Scheme is even more necessary than it was before the war and expenditure envisaged is of the order of $64,000,000 spread over eleven years.
17.