The following liabilities have, however, to be
set against the above surplus: -
(a) Rehabilitation expenditure to
31st March, 1951 in excess of the $50 millien raised of the $150m, rehabilitation lean. It
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socas unlikely that any further local loan can be raised for the balance
188(m) ~~~(see p.103 of printed Estimates).
(b) Liabilities undertaken by the
Colony under the supplementary financial settlement viz.
"denials" (say Álóm.) and 'War Supplies Board (say Ák m.) and defence contribution to H.M.G. ($160.)
$36(m)
$121, (m)
It seems therefore that the Colony should, unforeseen cir- cumstances apart, finish up 1950/51 with a "free" surplus of at least $36, being equivalent to about two months revemme. The Colony should by 31st March, 1951 have disposed of its main rehabilitation" problem without further loan assistance, and will now have to consider how to finance its development programme.
3. Should the present commercial prosperity in Hong Kong
continue, and taxation, especially income tax, be further ́increased, the Colony should continue to enjoy substantial budget surpluses even possibly after incurring additional expenditure on social services. These surpluses should enable the Colony to proceed with the initial stages of the
/Tai Lam