CO129-543-12 Loans for public work 29-3-1933 - 20-12-1933 — Page 67

HONG KONG LEGISLATIVE COUNCIL.

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the resumption of this land he will be deprived of one of his most productive larvae collecting grounds! (Laughter).

I share the regrets expressed at the slow progress that has been made with the Central British School. I stressed the necessity of pushing on with the work and am very disappointed that it has not been possible to make greater progress. The Director of Public Works has explained to the Council the reasons which prevented his making an earlier start. I give an undertaking that if the work can be accelerated I will ask this Council to vote an additional sum for it in the course of next year.

Under Loan Works, I trust that it will be possible to make more rapid progress with the construction of the new Gaol, for the existing one, as you all know, is a disgrace to the Colony and the present position is almost untenable.

Meanwhile, as Honourable Members are aware, a temporary block is being constructed at the Laichikok Prison to enable us to cope with the present congestion.

My Honourable friend the Director of Public Works has dealt with the cross harbour pipe line. Government fully realises the urgent need for a second line and will push on with the work as fast as possible.

The same remarks apply to the Shing Mun Gorge Dam and I can only add that in the Resident Engineer we have a most capable and energetic officer who can be trusted to get the work completed with the greatest possible expedition.

The question of our policy in regard to financing Loan Works will require careful consideration in the near future, and I propose to go into it with the Colonial Treasurer, Mr. Taylor, on his return from leave, as it was proposed that he should consult the Financial Advisers of the Colonial Office while in England. For some time we have been financing Loan Works out of Surplus Balances.

This course is economically sound, but obviously it cannot go on indefinitely, and the difficulty is to decide just at what point to raise a further loan.

You will see from the Colonial Treasurer's memorandum on the financial position that it is anticipated that by the end of this year we shall have drawn on Surplus Balances, in anticipation of a further loan, for an amount of over seven and a half millions. It is obvious, therefore, that we cannot continue drawing on Surplus Balances much longer, and it may be necessary to borrow before very long.

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