11
12. The programme of Public Works Extraordinary, estimated to involve the expenditure of $4,979,594, is .discussed in detail in a separate memorandum by the Director of Public Works. It includes provision for the completion or continuation of a number of works now in progress and for the usual items of a more or less recurrent nature. Provision is included for certain other new build- ings including a new Block at the Central Police Station, a new Disinfecting Station. and Public Mortuary at Kowloon, a new Infectious Diseases Hospital at Kowloon, a new Police Station at Kowloon Tong and an Experimental Agricultural Station. in the New Territories.
As before, all new works connected with the Water Undertaking are being charged to Loan Account.
13. The estimated total expenditure of $62,389,776 is much higher than any on record for a period of twelve months and if the estimates given above are realized and unless additional revenue is raised by increased taxation the surplus of assets at 31st March, 1942, will drop below the figure of $10,000,000 which was formerly regarded as a proper reserve. The Secretary of State has expressed his desire that, so far as is reasonably possible, schemes for the development of Colonial Territories and for the improvement of social services should not be curtailed on account of the war. For this reason provision has been made for an Experimental Agricultural Station in connexion with the Botanical and Forestry Department and for the erection of a building to house the Fisheries Research Station, even though the possibility of obtaining financial assistance for these purposes from the Colonial Development Fund seems at present to be remote. It is clear that what can be done in the way of new services and public works during 1941-42 will depend on the extent to which the estimates of revenue are realized and that the position will have to be carefully reviewed from time to time during the course of the year in the light of the actual revenue received and the actual recurrent and war expenditure incurred.
D.
LOAN WORKS AND PUBLIC DEBT.
14. The loan of $25,000,000 authorized by Ordinance No. 11 of 1934 has now been fully issued, 3% Dollar Bonds to a nominal value of $14,000,000 having been issued in 1934 at 99%. producing $13,860,000, and similar Bonds to a nominal value of $11,790,000 having been issued in 1940 at 95%, producing $11,140,000 after deducting the expenses of issue. The raising of the 1940 loan made it possible to repay to surplus funds the amount previously advanced on this account. The precise allocation of the full sum of $25,000,000 is shown in Appendix V (b) to the Estimates.
Expenditure on account of a proposed new loan, met in the meantime by advances from surplus funds, had totalled $2,856,994 by 30th September, 1940, and it is estimated that $3,923,408 will have been advanced by 31st March, 1941.
Expenditure to be met in 1941-42 in anticipation of this new loan totals $492,999.82 and is entirely confined to Water Works and restricted to the con- tinuation, and in some instances the completion, of works already authorized.
The total debt at 31st December, 1939, was $16,038,000, made up of $4,838,000 4% Conversion Loan, 1933, repayable in 1953, against which a Sinking Fund of £75,567 was held; and $11,200,000 34% Dollar Loan, 1934. The latter is the balance of the sum originally borrowed, $14,000,000, which is being repaid by annual drawings at the rate of $560,000 per annum. During 1940 the funded debt of the Colony was increased by $11,790,000, the nominal value of the bonds issued in respect of the balance of the 34% Dollar Loan authorized by Ordinance No. 11 of 1934. After allowing for the 1940 drawing on account of the 1934 Loan the funded debt at 31st March, 1941, is estimated at $27,268,000.
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