CO129-533-4 Hong Kong Water Supply Scheme 28-1-1931 - 20-1-1932 — Page 37

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for the present taxpayers.

If, as I hope, Your

Lordship will accept these views, I shall be glad if a telogram may be sent to that effect, for I am most anxious to proceed with the work at once. I my say that I understand that it has been approved that the cost of erecting a new gaol and a hospital in Kenya be

charged to a loan.

10. I would refer to Your Lordship's telegra No.4 of the 6th of January, 1931, stating that Your Lordship does not approve of charging to surplus balances or loan the cost of the proposed

I arrangements in regard to the Naval Arsenal. venture earnestly to ask for a reconsideration of this decision and for Your Lordship's authority to charge

it to surplus balances. The money required will be vecogered in a short time by the sale of the land thus rendered available and it therefore soeus inequitable

to raise additional taxation to cover the cost of such

e scheme,

11. In view of the improved financial position,

and the fact that it is almost certain that the 1931

Budget will be balanced, I have come to the conclusion that there will be no necessity to resort to a loan this year, as it will be possible without embarrassment to continue to advance money for approved loan works from

surplus balances. If the anticipated revenue for 1932 is realised, and there is no sbnormal expenditure, it might even be possible to finance the remainder of the present approved loan programme without borrowing

naxt