CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 42

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it has previously been the aim of the

Colony to maintain, but in the present

would

circumstances I agree that it will be

undesirable to impose additional taxation

for the purpose of maintaining this

reserve. The eventual effect of the Sino-

Japanese conflict upon the finances of the

Colony appears difficult to estimate, and

I agree that for the present the Colonial

Government may well draw temporarily upon

its surplus funds should events make this

necessary.

3.

I observe that it is proposed to

continue financing loan works from revenue

pending a further issue of the 1934 loan.

I see no objection to this course, but I

observe that present advances from surplus

already

funds for this purpose amount at the moment

to approximately $10,000,000. The present

surplus of assets amounts to approximately

$12,000,000, and the assets as set out in

the Estimates include the item of advances

bending reimbursements from future loan.

It