و 16.
၄
No. 3/2291/47.
No. 100.
(2)
Encl. 1
Encl. 2
Encl. 3
Sir,
53652/48
COLONIAL SECRETARIAT,
LOWER ALBERT ROAD
HONG KONG
Ich May, 1948.
ed w
With reference to my telegram No. 234 of the 1st March, 1948, I have the honour to transmit, for your consideration, copies of the Estimates of Revenue and Expenditure for the financial year 1948/49, as approved by Legislative Council. Copies of an explanatory Memorandum on the Estimates are also enclosed, but since it was written there have been certain modifications in the Estimates as a result of discussion in Select Committee, particularly under the Public Works Extraordinary Head. The major changes, together with some minor alterations and a number of amendments in departmental personal emoluments totals, are set out in detail in the enclosed copy of the Committee's report.
2.
The Estimates for 1948/49 were prepared under very great difficulty as, although departmental Other Charges were printed in good time, nothing could be done on the personal emoluments side until approval of the new rates of salary had been received. This was not forthcoming until January, and, even then, a number of points in respect of certain departmental scales, cost of living allowance, etc. remained to be decided. In some cases finality was only reached just before the date fixed for the introduction of the Appropriation Bill into Legislative Council. Conversion points presented a good deal of difficulty, and in the case of some of the larger departments, personal emolument figures were only received in the middle of March. Owing to the unsatisfactory printing arrangements, it was necessary to have them printed before they were thoroughly checked, and a number of changes in totals afterwards proved necessary.
3.
Before commenting in detail on the Estimates for 1948/49, it may perhaps be desirable to give a resume of the financial position since the re-establishment of Civil Government on the 1st May, 1946. Recurrent expenditure for the 11 month period ended 31st March, 1947, finally totalled $85,624,391 against a revenue figure of $82,141,556. There was thus a deficit on recurrent expenditure of 83,482,835 which was a much more favourable result than anyone dared to hope for at the close of the first year of Civil Administration. Fortunately, this deficit was offset by a credit balance of just under $4,000,000 which this Government possessed in London at the time of the Japanese occupation. 1947/48 therefore opened with a revenue balance of $487,435, but Special Expenditure on rehabilitation, which was charged to an Advance Account pending the raising of a loan, totalled
$30,360,747 by the end of the financial year 1946/47.
4.
The year
During the year 1947/48 Revenue was much more buoyant than could reasonably have been expected, and, owing to an unexpected rush to settle demand notes in respect of Earnings and Profits Tax before the 31st March, the revised estimate
THE RIGHT HONOURABLE
ARTHUR CREECH JONES, M.P.
18 MAY 1948