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Hong Kong Government to take steps to secure
themselves from these increasing demands if the
Several courses
War Office will not meet us.
could be taken; for example, it would be quite
possible to place the new waterworks under a
Water Board of an official character, but with
finances entirely separated from those of the
Government. This would, of course, be strongly
resisted by the War Office and the Treasury, but
would be fully within the competence of the
Secretary of State who could also,as an alternative
authorise the Hong Kong Government to pass a Loan
Ordinance containing a provision similar to that
in the 1927 Ordinance, exempting the sums raised
for interest and sinking fund from military
contribution.
Either of these courses would
meet the immediate difficulty, but presumably
neither could be adopted without previous discussion
in the Cabinet.
This, however, is for the future, and for
the time being, the further letter of appeal to
the War Office can be sent off.
16.8.32
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