INWARD TELEGRAM
TO THE SECRETARY OF STATE FOR THE COLONIES
Coda
No. 234.
FROM HONG KONG ( 31r A. Grantham)
D. 1st March, 1948. R. 1st
T
12.10 hrs.
XI 4.
272
271
2
1648
TRY
(£9,375,000)
1480000
I hope to be able to present the Estimate: for 1948/49 to the Legislature by the middle of March, but preparation has been held up by the necessity to provide at a late stage foł revised salaries throughout the service, and by the difficulty over grading and conversion points. Figures, therefore, are not yet final, but indications are that balance will be possible, and that there may be small surplus.
2+
Normal revenue is estimated at £14,000,00 compared with revised Estimate of 147,000,000 for present year, but owing to the impossibility of providing requisite establishment of Assessors, collection of earnings and profits tax this year is considerably in arrears. These arrears, estimated to total $10,000,000. would be included ja next years revenus, thus bringing final figure to $150,000,000. Although revenue figures are conservative, it may be desirable to make increased allowances in certain directions for possible falling off in trade. Any such reduction can be made good by the transfer of some portion of S.T.I. Drofits to revenue during the coming year.
る。
It seems probable that final expenditure
figure will be approximately $148,750,000, though further efforts are being made to reduce it. Personal emoluments account for $38,000,000 plus $23,250,000 in respect of oost of living allowance, Other charges total 969,450.000 and special expenditure of $18,000,000. Latter includes nearly $10,000,000 in respect of Public Works Extraordinary, chiefly for works which are not. replacements and are therefore not chargeable to loan, There is also special expenditure under Air Services, Education, Fire Brigade, Railways Marine and Sanitary Departments heads on rehabilitation measures which could not be met from remaining balance of loan funds allocated to these Departments on replacement of equipment in use since re-occupation, such as fire engines and barges of wartime manufacture which were designed for a very short life.
40
An expenditure figure of
148,750,000 is ve
high for a Colony of this size, but with so much remaining to be done, it is difficult to redvoe it at the present juncture. Some items, such as 85,000,000 in respect of Kai-Tak compensation and $1,500,000 for intial grant to municipalities, are definitely non-recurrent, and as time goes on, there should be lese and less rehabilitation work requiring completion and consequently some reduction in temporary staff. As I have pointed out on previous
Occasions/