CO129-488 - Governor Sir Stubbs - 1925 [1-7] — Page 388

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Establishments or with the extensive Harbour developments

dealt with in Mr. Duncan's report. It is at present

impossible to supply any actual facts or any figures even

approximate in either case. The Military Lands question is at present in a state of suspension and unless the War

Office can be induced to show some activity in the matter

it looks as if any expenditure in that connection would be

a matter for a year later than 1930. As to the harbour,

I cannot formulate full proposals at present but I am addressing you separately with regard to certain items.

I do not think, however, that the cmission

of these two classes of expenditure is material at present

as it can scarcely be disputed that the works in both cases

must be met from the proceeds of a loan.

3.

Before proceeding with a detailed

examination of the present schedule I would observe that

I am not in favour of raising a loan until our balances

are reduced to the figure of five million dollars which

I regard as the safety limit. I consider that all works

should be financed in the first instance from revenue and

balances and that, when the balances are reduced to five

million dollars, loans should be raised to which those

works, which it is considered should be regarded as loan-

works, should then be charged, revenue being re-credited

with the amounts expended. As many of the works, e.g. the

Praya Reclamation will in a short time bring in considerable

sums of money I would advise that in the first instance the

loans should take the form of Treasury Bills, which should

be paid off as far as possible as money comes in from such

works; only the difference if any between expenditure and

receipts being eventually charged to a long-term loan to

be raised when the financial results of the transactions

are clearly apparent.

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4.