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

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Easter 34627/34.

In comparing the above figures it is

necessary to bear in mind that the estimated surplus

of assets at the end of 1935 would have been much Smaller

similar but for two big payments in the nature of windfalls, namely, $1791033 on account of estate

duty of two big estates in 1933 and $975410 on account

in 1935

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of the crediting to revenue of the amount in the Military Contribution Suspense Account. On the other hand, at the end of 1935 a sum of $1,763,741 will probably have been charged to expenditure on account of a contribution of $2,000,000 to the Admiralty for

the Naval Arsenal Yard.

It is noteworthy that the Governor

anticipates that it may be necessary to reduce the surplus balances below the prescribed limit for a short period.

Revenue.

Of the ten Heads of Revenue six reflect

decreases as compared with the Estimates for 1934

and four reflect increases. The most noteworthy

decrease is under Head 3 "Licences and Internal Revenue" and amounts to over $1,300,000. The main

contributory factor in this decrease is a reduction under "Opium Monopoly" of $650,000 which is attributed to the unpopularity of Singapore opium

and to the trade depression.

The increases occur under Heads 6-9

"Kowloon Railway", "Rents of Government Property", "Interest", and Miscellaneous Receipts". The last named Head is inflated by the windfall of $975,410 from the Military Contribution Suspense Account.

Expenditure.

The Governor draws attention to the fact

that