CO129-550-1 Estimates 1935 14-9-1934 - 15-9-1934 — Page 15

9

14

Pare Hume 35 of encl. 4 to (1)

charge this sum to Loan funds raised under Ordinance 11/34.

Under the authority of that Ordinance (11/34) a 31 dollar Loan was floated in July at 99% and was heavily over-subscribed. The Ordinance authorises borrowing up to $25,000,000, but only $14,000,000 have so far been raised, the intention being to raise the remainder on one or more future oecasions as required. It appears that the sum of Janary of End 46511) $14,000,000 will have been expended by the end of

1934 and that it will be necessary to raise a further instalment of the Loan if conditions are propitious early in 1935.

Para.35 of

encl. 4 to

(1)

(36) on 33706/34

The War Office has queried the inclusion in the Schedule of Ordinance 11/34 of an item of $3,400,000 required to supplement other available funds to the extent necessary to enable the Hong Kong 3% Inscribed Stock amounting to £1485733 to be redeemed. The War Office objection is based on the grounds that the inclusion of this item in a Loan for which the revenue required for its service is to be exempted from assessment for the purpose of calculating Military Contribution, is not in accordance with the course to which they have agreed, and is prejudicial to the interests of the War Office in that it involves

unwarranted reduction in the Military Contribution

payable by Hong Kong. The War Office letter is

being referred to Hong Kong for observations.

No new capital works to be financed from

Loan funds are to be undertaken in 1935 and the

estimated expenditure in 1934 and 1935 on the works at present in progress is as follows:-

Work