OR REGISTRAT
AUG 1939
iE
CO. REGY
297
Telegram from the Offran Administering the Government of Hong END
Kong to the Secretary of State for the Colonies
Dated 30th August 1935. Received at 11.36 am.30th August, 1935,
No.211.
Balancing of Budget for 1936 is causing me some congerr. owing to decrease in revenue owing to trade depression. After
severe cutting of expenditure and after relief to the extent of over 500,000 dollars (Hong Kong) in water charges which I regard as essential, budget, which has been based on dollars (Hong Kong) at One shilling erd eightpence shows deficit of about 2,926,000 dollars (Hong Kong).
Surplus balances at the end of 1935 are expected to be dollars {Hong Kong) 12,986,000.
Utilising for Public Works extraordinary excess over dollars (Hong Kong) 10,000,000 surplus budget deficit is reduced to about 831,000 dollars (Hong Kong).
If dollars (Hong Kong) remain throughout 1936 at about two shillings this deficit will be covered by savings on sterling expenditure. If dollars (Hong Kong) fall there will be a deficit
dollars(Hong
and to meet this contingency I request your authority A. to transfer to revenue dollars (Hong Kong) 500,000 out of profits lying in Trade Loan reserve. This will leave in reserve more that
enough to cover the whole Trade Loan outstanding B. to announce
G
in introducing budget that if the budget cannot otherwise be balanced it may be necessary to impose & levy on salaries.
Owing to uncertainty regarding the future level of exchange it is impossible at present to say what amounts such levy if any will be but I will submit scheme for your approval before imposition
Request earliest possible reply to wold delay in introducing Budget now fixed for 12th September.
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