CO129-307 - Governor Sir Blake - 1901 [10-12] — Page 349

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which, for reasons stated in my minute on 41681

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think will have to be conceded. The extra cost may be put at $120,000 (which is the estimated exchange compensation for 1902). Of course, some officers may prefer sterling pay; but on the other hand that will effect a very small saving, and there will be others

And if we are entitled to the 25% "local pay" addition.

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give these allowances, it will have to be from 1 January next. As it is, that will make Hong Kong officers worse off than the Straits service, by one year;

the Straits officers received their allowances from 1 January last.

These three items will of themselves convert the estimated surplus into a considerable deficit. I do not include the two projected new schools, because it is far from certain what proportion of their cost will fall within next year: but it is likely that Government will ultimately have to spend some $150,000 at least on sites and buildings. (See 37876)

We can meet this deficit either by reducing expenditure, increasing revenue, or drawing on surplus funds.

(1) After going through these estimates, I am still of the opinion expressed on 37906, that we should reduce the expenditure on public works extraordinary.

Last year (1901) the estimate for P.W. Extraordinary was $726,338. This year it is $797,316. The various items of expenditure on public works generally since 1896 are as follows (omitting details):

Establishment