No. 2291/48c.
CONFIDENTIAL.
No. 92.
69 13
COLONIAL SECRETARIAT,
LOWER ALBERT ROAD
HONG KONG
12. May, 1949.
Sir,
(1)
Enclosure 1.
Enclosure 2.
Enclosure 3.
With reference to my telegram No.173 of the 22nd February, 1949, I have the honour to transmit, for your consideration, copies of the estimates of revenue and expenditure for the financial year 1949-50, 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 discussions in Select Committee. The most important of these modifications was the inclusion of provision for additional staff under the Medical Department head for the tuberculosis clinics, as the establishment for these new institutions had not been definitely agreed upon when the draft estimates were printed. The amendments made in the final proof of the estimates are set out in detail in the enclosed copies of the Select Committee's report.
2.
Before commenting in detail on the estimates for 1949-50, it will, I think, be desirable to give a brief outline of the financial position on the 31st March, 1949. The revised estimate of revenue for 1948-49 was $184,000,000 and of expenditure $160,000,000. This revised estimate of revenue finally turned out to be too low, for, as a result of heavy payments of duty and for other reasons, the revenue for the last week of the financial year reached the exceptionally high figure of $8,574,029. Local revenue collections up to the 31st March, exclusive of any revenue received by the Crown Agents since December, total no less than $190,904,315. There are indications that the revised expenditure estimate of $160,000,000 may have been somewhat on the low side, but it is clear that, when final figures are available, the anticipated surplus of $24,000,000 will be increased to at least $28,000,000.
3.
Assuming that the final revenue figure will be between $191,000,000 and $192,000,000, the approved estimate for 1948-49 will be exceeded by some $40,000,000. When the estimates for 1948-49 were prepared, there were some indications of a falling off in trade, and due allowance was made for this, Fortunately, however, this expected drop in trade did not materialise except in regard to our trade with South China which showed a further general decline. In spite of this, the total value of imports and exports reached a record figure, and this was reflected in revenue collections. All the main heads, with the exception of Head 1, Duties, exceeded the estimates, and this more than offset the s erious drop in receipts from tobacco duties.
THE RIGHT HONOURABLE
ARTHUR CREECH JONES, M. P.