1
SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
Date
No.
51
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normally have been met from or would be a fair charge against War Office funds amounts already to rather more than $44 million, and the final figure will no doubt be higher. This category of expenditure covers the following -
(a)
(6)
(c)
Expenditure on Military roads,
Water supplies to Military camps,
Provision of hutments to provide alternative accommodation for a refugee camp taken over by the Military, and for a school required as a Military hospital,
Repair of damage to roads caused by heavy
including track vehicles in
(a)
Military vehicles
frontier area,
(e)
(f)
Preparation of site for refugee camp which will become necessary in the event of the Military Authorities requiring the evacuation of the population of certain New Territories villages,
The Military Authorities are also occupying large areas of land belonging to the Kowloon- Canton Railway for which no rental has been paid.
Expenditure by the Civil Government on internal security measures necessitated by the present emergency accounts for a further $6 million. This represents abnormal expenditure only, and includes the excess of expenditure on Police services above last year's figure, but excludes the $42 million expended on the Defence Force.
13.
I still feel that the best approach to this question of the contribution is a quick settlement
of outstanding war claims which involve a legal liability against this Government. Once this issue has been settled I would be in a position to approach Finance Committee with a view to obtaining their approval for the payment of a contribution on the lines which I have suggested above, based on a figure of $30 million. I have every reason to believe that a formula of this kind would meet with their support, and in the years when the Colony is fortunate enough to finish up with a substantial surplus on the year's working, I should be prepared to invite Legislative Council to vote a further contribution. I wish it to be clearly understood, however, that these proposals are only applicable to the reinforcement of the garrison necessitated by the present emergency. Should the scale of reinforcement be reduced, the suggested arrangement should be subject to review and once the garrison reverts to its normal size the proposed formula would cease to apply.
14.
You will recollect that in your telegram No. 1281 of the 12th December, 1948, you expressed the view that it
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