CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 7

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becomes necessary, is a convenient and possibly

economical procedure.

The Resolution in the Council to

authorise the necessary expenditure up to the end

of next year is being taken today in Hong Kong.

The bulk of Hong Kong revenue is obtained

from

(a) Property assessment (akin to local rates

in England)

(b) Land sales

(c) Liquor duty

(a) Opium sales.

(b) and (d) have been "disappointing" in the last

two or three years. But none of these sources

should obviously suffer from the present

disturbance as far as the present and immediate

future are concerned.

As regards the trend of the cost of

local borrowing, we must rely on the financial

Secretary in cooperation with the principal

pri

banking corporations to keep an eye on the position

with a view to taking the opportunity of an early

issue of the balance of the 1934 Loan, should it

be necessary to raise cash by that means and to

reimburse the Colony's balances.

The amount of the vote to be taken today

to meet the expenditure up to the end of 1938

(subject of course to the approval of the Secretary

of State in due course) is a matter on which we

are not informed.

The expenditure up to the

end