CO129-525-3 Estimates 1931 and other financial papers 16-1-1930 - 1-9-1932 — Page 10

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Sales - $200,000 and Widows and Orphans

Pensions contributions - $104,000. (If that

large increase in pensions contributions is

correct, it must be due to increased salaries

and the Exchange.) That leaves $436,027

to be made up in small amounts.

Unless

there is a marked revival in trade, and no

reduction in the sale of Opium,

to bring in $2,700,000,

which

is estimated

I think they may

easily be $1,000,000 or more short of-their

1931 Revenue Estimates.

Turning to the Expenditure side, their

estimated deficit for 1931 of $2,299,096 would

have to be increased by $216,221 unless we

approve the proposal in (7) to charge that

sum which represents ordinary Public Works

If the Department salaries, to Loan funds.

staff in question are wholly employed on

Loan Works, that is legitimate, but the real

question is whether Hong Kong can afford to

go on increasing its loan commitments.

It

seems reasonably clear that the Retrenchment

Committee which has been appointed by the

Governor will have a difficult job, and we shall have to scrutinise the Government's loans proposals

with some care.

It must be remembered that

Hong Kong, unlike the Straits Settlement, has

no Opium Revenue Reserve Fund.

The Estimates are badly prepared. In

addition

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