CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 31

Nii: 302.

sir,

Draft or 5394/138

31

Colonial office,

Downing Street,

23 September,1938

I have the honour to acknowledge the receipt of

your despatch No.613 of the 5th of August, regarding the

preparation of a programe of major public works which are

likely to be commenced during the next few years.

2. I have observedwith satisfaction that a

comprehensive plan over the next five years has been drawn

and in general I approve your proposals.

3. I note that you consider that it may be desirable

to withdraw the definite statement that the present

programme could be met without any addition to the present

low level of taxation. I agree that it would be desirable

to do so. In view of the conditions now prevailing in the

Far East the outcome of which it is impossible to predict

1 a inclined to think that it would be wise for dong Kong

to maintain a liquid reserve higher than the $10,000,000

which it has previously been the aim of the Colony to

maintain. This point will no doubt be most carefully

considered when the programme of public works has assumed

a more definite shape and the probable cost can be more

In this connection I would invite accurately estimated, reference to Lord warloch's despatch No.122 of the 6th of

May, and previous correspondence.

I observe that the scheme

GOVERNOR

SIR OECHERY NORTHCUTE, K.C.E.G.,

provides