CO129-526-10 Water supply- Shing Mun Valley Scheme with plans of the dam and reservoir sites 8-5-1930 - 10-9-1930 — Page 14

the Comm: to commit itself so far ahead.

3. Any application which may eventually be made

should be based on plans and estimates as complete

as possible; there should be a careful examination

of the probable revenue to be derived from the

works that is a point to which the C D A C

always directs attention) ; and the application

should not include a request for a grant to cover

sinking fund charges--as the Act does not

permit of that.

I feel quite certain that, on the application as

it now stands, there is very little hope of

getting anything from the Fund. Water-works

should, obviously,be on a commercial basis, save

in very exceptional circumstances; and exceptional

circumstances do not apparently exist here.

"The price of water can, if necessary,be raised

to give a sufficient return on capital". If that

is so--and doubtless it is so,for Hong Kong--then

what justification is there for asking the

British taxpayer to pay in order that Hong Kong

may get its water fractionally cheaper? I per-

sonally see none; and I have no doubt that is the

view the C D A C would take. Hong Kong will have

to make out a much stronger case before it is

likely to get anything.

The 8th: October 1930.

to HK Tel 89-

LEATUTE

UNDER PATUTE

Conf. Tel.

24/10

4/10/20 cans 9-10 20

DEST

午

Gov

Replier to (12)

Agrees

to visit

of GOURLEY.

14