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Behind the questions of progress and development in Hong Kong lies the
financial background, the difficulty of which should not be underestimated.
After the war, H.M.G. came to a settlement with Hong Kong which included a
grant of £1 million, to meet expenditure connected with problems arising out
of the war.
The Colonial Office at the time when this settlement was made
had understood it to include such things as Denial Claims etc., but it
subsequently came to light that this was not the understanding of the Hong
Kong Government, and this has always been a very sore point with the
Legislature. The value of these Denial Claims etc., was put at maximum of
£1 million, the making good of which the Hong Kong Government will as
things stand have to meet from their own resources. Apart from this sum
there are several important outstanding claims arising from the war not yet
settled which the Hong Kong Government claim should be met by H.M.G.
include such items as claims by Hong Kong firms for goods manufactured for the
Imperial forces in 1939-41 (£300,000); value of vessels left in Hong Kong by
Ministry of Transport and Admiralty (at least £200,000); relief stores
supplied by H.M.G. after liberation (H.M.G. may ask for some contribution
towards a total cost which may be as much as £800,000); and in all total
some £650,000 exclusive of the last item. Other Government Departments
and the Government of India etc., are involved in a number of these claims,
and negotiations for settlement are not yet completed.
These
More recently the Hong Kong Government have been asked what sum they and
prepared to contribute towards the cost of the maintenance of the present
garrison of nearly two Divisions with ancillary troops in Hong Kong,
the
estimated initial cost is £10 million plus a recurrent of £2 million a year
from 1950 on, in addition to raising and equipping their own Hong Kong
Defence Force.
Finance on a large scale (£8 million) is required for a new water
reservoir at Tai Lam Chung and also for the new Deep Bay Airport to replace
the present very unsatisfactory aerodrome at Kai Tak. Towards the Deep Bay
Airport Scheme, H.M.G. have promised an interest-free loan of up to
£3 million, but the total cost is estimated to be £4 million at least.
To summarise, Hong Kong has impending liabilities of approximately
£7 million in respect of claims arising from the war, and necessary capital
works (allowing for H.M.G.'s loan); and is called on for as substantial
contribution as her means permit towards current defence costs.
Her
/present