CO129-539-12 Loans for public works- military finances 26-2-1932 - 7-3-1933 — Page 53

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HONG KONG LEGISLATIVE COUNCIL.

THE COLONIAL TREASURER.-Sir, The Hon. Sir Henry Pollock has raised the point as to converting the present Public Works Loans, 1927. This question has been receiving careful consideration for some time past, but Government is not yet in a position to make a statement on the matter.

The Hon Mr. W. E. L. Shenton raises two points in connection with finance. The first is as to the position of the Trade Loan. This is fully set out on pages 18 and 19 of the annual financial report for 1931. I would supplement this, however, by stating that the principal outstanding on 30th September was $965,229.76. Every endeavour is being made to call in money outstanding but the difficulties in the way of obtaining repayment of interest and principal are obvious. Power of sale is exercised as favourable opportunities occur.

The hon. member's second point deals with interest on fixed deposits. Of the sum of $1,828,999.92 shewn in the 1931 balance sheet as on fixed deposit, $1,369,633.40 was earning 32%; $59,366.52, 3% and $400,000, 2%. I do not consider that this money could have been more properly invested consistent with safety.

THE COLONIAL SECRETARY.-Sir,-It is very gratifying to note that the views of the unofficial members are so closely in accord (except that there seems to be a certain tendency to press the Government to further expenditure) with the proposals of the Government as set out in the Estimates; the more so that to-day's debate shows that the details have been carefully studied and that openings for criticism can hardly have been missed. It remains to do little more than to add the further explanations asked for, and the Colonial Treasurer and Director of Public Works and the Harbour Master have

Master have now dealt with

dealt with the points of a more specialised nature. There are others of a general character to which answers are required if the picture is to be complete.

I will begin with some questions on administrative matters. that have been asked. In the first place I venture to think that the senior unofficial member must have misunderstood the proposals dealing with Cadets and Senior Clerical and Accounting Staff. In effect there is no expansion of the Cadet Service, but we have to be ready with trained officers against probable retirement in the near future. The age of retirement has recently been altered as hon. members are aware and may with permission be as low as 50; also, the training period for cadets has been lengthened by the addition of a course of one year at Home before coming to the Colony. These two changes obviously necessitate some extra provision during the transition period, and it remains to be seen in due course how recruiting requirements will settle themselves. down in the future.

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