0.."B" 139 (Contd.)
Page 3.
241
- 14.
In budgeting for expenditure of nearly $180,000,000, therefore, the Colony is strictly providing for expenditure in excess of its normal revenue. He felt that this was justified, for, apart from non-recurrent security expenditure, ap, roximately $5,000,000 undor Public Works Extraordinary would have been charged to Loan had sufficient balances been available, while wider Miscel- laneous Services $3,500,000 was provided to cover war claims of various sorts. Thus, if abnormal expenditure be excluded, normal revenue would amply suffice to cover the Budget.
15.
Personal omoluments. Basic salaries, $45,120,874, with $28,000,000 added under the Miscellaneous 3ervices Heading in respect of cost of living allowances, with $700,000 added in con- nection with railway cost of living allowances, give a totul figure for Government staff of $73,826,874. He conceded that this is a disproportionately high figure, and hoped that the expert in methods of organisation now arrived, and who has commenced his investigations, may be able to furnish helpful proposuis.
16.
Public Works and Special Expenditure and cost of living allowances total $72,357,006 against the yoar's just closing figure of 64,456,576.
17.
Defence Force. Provision is made for the infantry unit, Hong Kong Regiment, and also for laval and Air Force unius. The hegiment estimates, including a headquarters for the combined force and appropriate staff, is $2,000,000. Estimates for the Neval and Air Force units are $209,282 and 135,930 respectively, and aro anticipated to exceed those figures next year. The headquarters pro- vide $500,000 to cover work for 1949/50; the probable ultimate erection costs being in the region of $5,000,000.
18.
Police Force, The strength of this, 2,220 in 1941, is now 4,219, and a further 800 personnel are to be engaged. $900,000 allows for new equipment, while a total increase in expenditure is $2,250,000, while a million is provided under a sub-head of P.W.E. for rank and file police quarters. v6,500,000 will also be allocated from Loan funds for completion of divisional headquarters, police stations, and block houses.
19.
Public Works Extraordinary. $19,618,000 includes a number of new projects directly or indirectly related to security, as well as a number of works of a rehabilitation nature which cannot be charged to Loan funds due to exhaustion of allocations.
20.
Subventions. Under this heading are grouped all grents mude by Government to local and outside institutions, a number of which carry on educational or medical work which would otherwise be incumbent upon Government to provide from its own resources. Government finds it cheaper to subsidise in such cases then to itself carry out such work. $13,250,000 is agreed to be a high figure.
21.
Loan funds, Up to March 31st, 1948, expenditure from this source totalled $57,269,913, and it is computed by March 31st, 1949, that this figure may be up to $98,467,615, Over $12,000,000 of the balance is for the Kowloon-Canton kailway, and $8,000,000 for the new air-port towards which H.M.G. has agreed to a loan of £3,000,000 interest free for construction costs.
I am, Sir, Your obedient Servant,
W.P.Montgomery.
WPHIBHP Enc.
United Kingdom Trade Commissioner.