10.

256

Orig. on 54228/1/49.

Extract from Secret Savingram No. 56

from the Governor of Hong Kong

to the Secretary of State dated 30th March, 1949.

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8.

Presentation of the Colony's budget to the Legislative Council on March 17th has evoked comment in the local Chinese press that the expenditure on education and public health

is comparatively small in proportion to the whole budget. There is also criticism that the provision for Civil Servants' salaries is excessive. There was relatively little comment on the provisions made in the Estimates for Defence matters, though I emphasized in my address to the Legislative Council that the increases in the Estimates for security measures, notably the Police and Defence Force, were necessary since it would be foolish not to take measures to ensure law and order. I emphasized also that our security forces are required primarily for internal security.

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