CO129-536-1 Estimates- 1932 3-9-1931 - 16-6-1933 — Page 120

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is to repay the 6 per cent. 1927 Public

Works Loan, which, however, need not

be paid off until November 1938 unless

a new loan can be raised at lower rates.

Another $5,000,000 is required to reim-

burse to surplus balances the sums advanced

for loan works. When, as a result of

refund, further money from surplus balances

is available, I should like if possible to

see expenditure on the new gaol, which is

to cost $4,500,000, charged to surplus

balances rather than to loan, though I

agreed with some reluctance to its

being made a loan charge. My general

view is that, in the case of an

"established" Col ony such as Hong Kong,

non-productive expenditure on such

hospitals,

items as gaols, schools, court-houses, etc.,

should be charged against revenue and

not against loan monies. In the absence

of major calamities greataelyems, the

ideal

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