CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 5

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agrees that it will not be possible to cut

down services further. He is, however,

concerned over the possible effect of the

Sino-Japanese conflict on Hong Kong revenue

and suggests that its effects be watched

飒

closely, GIRLMENT BRA SA TER

A

He agrees that the financing of

the new water works shall be undertaken from

loan funds financed at present from surplus

balances, but say that the Crown Agents are

being consulted as to the most suitable time

to raise a loan.

Copy despatch and telegram to

Crown Agents asking for their advice on

paragraph 6 of the despatch.

This despatch might also be shown

to Sir G. Northcote before he leaves for

Hong Kong.

? So proued.

7. Rages

17/1x/37.