CO129-533-4 Hong Kong Water Supply Scheme 28-1-1931 - 20-1-1932 — Page 32

COPY.

CONFIDANTIAL

Drip, aga. 82818

31

(Room for Public Work)

18.

14.

32

Government llouse,

Hong Kong, 7th August, 1931.

P2808/31

by Lord,

I have the honour to acknowledge the receipt

of Your Lordship's confidential despatch of the 26th

of lay, 1931, on the subject of anticipated loan

requirements.

2. I am glad to say that the financial position

has improved considerably, and may be described as not

unsatisfactory, though the position has been attained

to some extent by deferment of certain desirable works.

The rapid fall in the sterling value of the dollar

early in the year, while causing a large increase in

the dollar equivalent of the Colony's sterling commitments, coincided with an improvement in the

general situation, and I am glad to be able to report

that the conservative estimate contained in the

enclosure to my despatch of the 13th of March can now be reconsidered in the light of the experience of the first half of 1931.

3. The actual deficit in the 1930 Budget proved

to be no more than 301,173, so that the balance of

assets over liabilities on the 1st of January, 1931,

was

THE RIGHT HON URABLE

LORD PAJUFIELD,

&c.,

&c.

&C.