16
་
revenue the several essential development schemes (of which the Tai Lam Chung Reservoir and the Deep Bay Airport are the most important) which are expected to cost in all about $400 million. The Governor says that what is mainly needed in order to reduce the cost of administration and thus to free revenue for such schemes is:-(a) a reduction in security expenditure and (b) a reduction in cost of living neither of which he thinks is very likely. with regard to (a) he hopes that it may be possible to agree on a figure smaller than $16 million for the contribution towards the cost of the garrison for 1951/52; the Treasury on the other hand hopes that Hong Kong will continue to contribute at this rate even if the garrison is reduced in size. It seems to me that neither (a) nor (b) can be relied on and if Hong Kong is to go ahead with necessary development some way will have to be found to enable her to raise money and that fairly rapidly as the water supply position is becoming urgent and work seems likely to start soon at the airport the two most costly of the development schemes.
G
7.I have not yet studied the memorandum on the Estimates enclosed in (14) but instead I am sending the file to Mr. Palmer, Mr. Bourdillon and Mr. Hall so that they may be aware of the contents of the Governor's despatch prior to any meetings which may be necessary with the Governor, who arrives here on leave tomorrow. When the file is again free a copy of (14) with enclosures should go to the Treasury and consideration should be given to approving the Estimates.
~.
14th June, 1950.
After allowing for the 'Defence' contribution
9416m (km), AK deficit of $12.5m.
the
rate
registration tax,
one
m 194
އ
bragating for a In apite of
of Profili Tax
the
revenne
and the
the
estrusale
fifth less than the actual
1949/50-
about $250 m.,
to the actual revenue
increase
bravers
$204m
revenue
about equal
It is
19489.
hoped that
the estimate
will
644
prove
to have been
the
on
the
As regards
to be
K
the event,
conservative side!
accumulated surplus
of $150 milhor's at 1. 4. 50, of all outstanding loan
charges
are
Del
A