CO129-509-15 Water supply- development scheme 30-1-1928 - 17-1-1929 — Page 2

1. GOVERNOR, Conf.

30/1/28

(Forwards recommendation asks for

reply by cable).

N

a30238/27

Eze 30044B/27 452753/28

new

This fee water supply scheme is

probably due to the restriction of the Shing Hun Valley Scheme, (see 20132/26)

It is proposed, (see para. 9) to

charge these works to Loan Account, but it is

not quite clear what loan is to pay for them.

The local loan raised last year was for five

million dollars only. Of this $3 million

Mun

were allocated to the Shing/Valley Scheme,

the, remainder being left for the ore Public

(unchilling (ne time

Works, In view, however, of the increase

in the estimates for the aerodrome and the

small contribution which H..G. eventual ly

agreed to make, Hong Kong's share will be

very nearly $2,000,000. The local loan

therefore, will not be sufficient even to meet

this, and it will be necessary to find another

half million from some other source.

I

would suggest, therefore, that we should first

telegraph asking from what loan funds it is

intended to obtain the money necessary for

this new Scheme, pointing out that the local

loan is already half a million short of the

expenditure on works it was originally intended

to finance.

5 Gamme

12.9.28