CO129-577-1 Estimates- effect of war on colonial estimates 15-9-1939 - 4-10-1939 — Page 4

вонд

7450

on M50 Geal

Telegram from the Governor of Hong Kong to the Secretary of

ate for the Colonies.

Dated 2nd.October, 1939. Received 2.15 p.n. 2nd. October, 1939.

5.44

No.324 Confidential.

Your Ycircular telegrams Nos.54 and 62 Confidential.

Estimates for 1940- 1941 were drafted largely before the

war and assumed the continuance of current conditions locally:

that

balanced

they provided * revenue and expenditure approximately

as nearly as $50,000,000 for 15 months period. Normal provision

made for existing recurrent services $44,500,000; special expenditure

and new services 2,200,000 including Air Raid Precautions, increase

in Police, Medical and Sanitary Services; and Public Works

extraordinary $3,500,000 as including road development and

commencement of Infectious Diseases Hospital, Health Centre and New

queens College. Provizion for new Government House totally suspended Ifeel that possible effects of sub-joined proposals would be to

convert small deficit of the ordinary budget into surplus of between

1 or 2 millions.

Even if part of Public Works extraordinary and new

services are deleted, which I should prefer to avoid and allowing for strict economy generally snew demands for war services are likely

to cause an increase of expenditure on balance. At the same time

there may be a diminuation of existing sources of revenue. I

consider however and believe it to be the opinion of responsible members of the public that Hong Kong should offer at once substantial increase in assistance to His Majesty's Government in war expenditure and that the present low level of taxation should be raised according

ly.

I accordingly request your approval to submit to

the Legislative Council the following financial proposale;