CO129-577-2 Financial assistance to Hong Kong Travel Association 15-4-1939 - 24-10-1939 — Page 3

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The

should be made a charge upon the Colony's general

revenues, on the analogy of municipal undertakings

of a similar character in the U.K. Best Colonial

Government at first refused, but after discussion

with the unofficial members of the Leg. Co. the

whole matter has been reviewed.

As it is clear that the Travel Association

cannot carry on on its present basis, the Governor

seeks approval for the acceptance of it as a

Government liability.

The cost of maintaining it

is estimated to amount to $50,000 annually, and

authority is sought for the inclusion of this sum

(as a maximum) in the 1940 estimates. For the

remainder of the current year the Association could

draw on its reserves, any balance of which would

revert to general revenues on the assumption of

full responsibility by the Government on the 1st

January, 1940.

I should have thought that the Travel

Association would have been rather an expensive

luxury in these conditions. Surplus funds, now

standing at about 131 millions, and estimated to

be just under 13 millions at the end of this year,

are well under half a year's revenue. But in

view of the fact that Hong Kong revenues are at

the moment flourishing (though this is presumably

more or less temporary), and that the project

has the support of the unofficial members of the

Leg. Co. ? we may approve the Colonial Government

accepting full responsibility for the maintenance of

the Association, and the inclusion in the 1940

estimates