KAB: omr
SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
Date
54
-2-
ive expenditure, such as the registration of all Hong Kong residents, are still being received, and the deterioration of the Chinese political climate is causing a gradual but persistent rise in the cost of living, which is accentuated by the inflated value of the U.S. dollar on the free market as a result of the han on dealings in gold. This rise in the cost of living must eventually be reflected in Government expenditure. While therefore it has been possible, by drastic cutting of normal expenditure on the lines envisaged in paragraph 7 of my savingram under reference, to hold back expenditure in the first quarter of this year to a figure well below the proportionate estimate: and while at the same time the estimated figures for revenue have been slightly exceeded, it is too early to predict a substantial surplus, or even to expect any surplus at all, in the year 1949/50.
6.
Expenditure against Rehabilitation Loan up to the 10th August, 1949 was $92,502,000 of which approximately $42,502,000 was made up from surplus balances pending the raising of further loan funds.
Ina &