CO129-568-4 Estimates 1939 8-10-1938 - 6-7-1939 — Page 18

18

necessary.

? Telegraph approval of the estimates and

follow by a despatch signifying non-disallowance of

the Ordinance in 5, confirming the telegram and

remarking on the lines of "A" above.

P. Rogen

21. XI. 38.

Since the Estimates, as introduced in the

Council in October, were surveyed here in the minutes

following No. 1, they have been pruned in respect

of expenditure on certain services, mostly Public

Works Extraordinary which could be deferred to a

total of $796,000, and the estimated deficit has,

therefore, been reduced from $2,400,000 to $1,660,000.

It has also been made clear in the Finance Committee

that certain expenditure on recurrent works can

without difficulty be retarded should the financial

position in the course of 1939 make this desirable.

Apart from those excisions from the expenditure

programme, however, the Governor and the Select

Committee have decided to make no substantial

changes in the Budget as introduced ince

experience so far has shown that the estimated

revenue may quite likely be achieved in spite of

the Sino-Japanese disturbance, and its effect on the

(27

Colony, and also because there is no alternative

foundation for preparing any firm estimate of revenue.

The later weekly reports which have been received

since No. 4 was written tend to confirm the belief

that unless the present situation develops in some

way definitely damaging to the Colony, Hong Kong's

finances may wellhold their own during the coming

year. The Governor himself in paragraph 7 of his

despatch