CO129-557-5 Estimates 1937 19-8-1936 - 7-8-1937 — Page 7

7

(See page 11 of encl.3 to 4.)

The

it is hoped, is the beginning of a recovery, by increasing taxation (certainly J.M. Keynes would approve, if not orthodox financial theory!). position cannot be regarded as satisfactory and fluctuation of the exchange makes the Estimates more

Both the Colonial than usually provisional.

Secretary and the Unofficial Members of the Council agreed that essential services have already been cut to the minimum, if not below it.

In the debate in the Council the Governor

suggests a new procedure for the budget which will bring Hong Kong practice into line with that of most British Colonies. At present the Estimates are re- viewed by a Committee consisting of the Colonial Secretary and the Colonial Treasurer, with the

Governor in the chair.

After review they are printed and presented to Unofficial Members who, four or five days before the second reading, send printed copies of their comments to the Colonial Secretary for his

The Governor now suggests that reply in the debate.

the Estimates Committee should consist of the

Colonial Secretary and Treasurer only, with appeal to

the Governor, if necessary, from the heads of Departments. When printed they are to be delivered to Unofficial Members and after debate to be discussed by a select committee of the Colonial Secretary and Treasurer and Unofficial Members, who could, if they wish, summon heads of Departments for consultation. The Committee then report and if

all