3
((5) in 92691/32) as the minimum at which
surplus balances should be maintained.
A
proposal to finance Public Works Extraordinary
out of surplus balances to the extent to which
anticipated surplus balances would exceed
$10,000,000 was approved by the S. of S. in
connection with the 1934 Estimates ((4) in
13858/33). The two proposals are not,
however, strictly parallel, as the operative
date in the case of the 1934 Estimates was the
end of the year to which the Estimates
related, whereas in the present instance the
operative date is the beginning of the year
1936. However, I do not think that any
objection should be raised to the proposal in
the present difficult financial circumstances.
This will reduce the estimated
deficit to $831,000. The 0.A.G. considers that
this will be covered by savings on sterling
expenditure if the Hong Kong dollar remains at
about 2/-. But it should be remembered that
if that were so, there might be a resulting
intensification of the depression and a further
drop in revenue which might more than counter-
balance the savings on sterling commitments.
Alternatively, a fall in the dollar to 1/8
thereabouts may synchronise with a trade
improvement improvement and consequent revenue buoyancy.
To meet the possible deficit the
0.A.G. asks the S. of S. 's approval for
(1)
transferring $500,000 from the Trade
Loan Reserve to revenue. The Trade Loan was
authorised by Hong Kong Ordinance No.13 of
1926
No comments yet.
Private notes are available after approval.