CO129-568-4 Estimates 1939 8-10-1938 - 6-7-1939 — Page 2

C. I. "Financial

1. Gov.

754

ما

8.10.382 (Pro. dft. betemanes ogether wit dft. Abstract, nema by Financial Secy & OPW, & apies of revised

اندا

منصف

procedure aaspted in connection with intro. into L£9. C'cie.)

The Estimates provide for

Revenue.

Ordinary

35,257,621

Extraordinary

839,704

36,097,325

Expenditure.

Recurrent

35,229,992

Extraordinary

3,272,768

38,502,760

Deficit.

2,405,435.

MENAJAREN..

Chi

See e.q. Gar's speech a

53960/38,

0/38.

Up to the beginning of october the revenue

position was very satisfactory, in that Hong Kong

was benefiting by diversion of trade from shanghai

and from the war "boom". Partly on internal

grounds and partly owing to the Sino-Japanese

conflict, with the resultant influx of refugees,

shoveres

the Colonial Govt. had to face considerably

though

increased expenditure e the latter had not

metu risen to an extent which need have caused

alarm on financial grounds,if the Japanese had not

attacked Canton and, temporarily at least, cut off

the Colony from its normal intercourse with south China. The Japanese attack has, however, altered

the position completely, and until the outcome of

the conflict in South China is clearer it seems

impossible to make any forecast of Hong Kong's

position.