CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 102

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As to the actual substance of the

position in Hong Kong, I think that perhaps

the figures as presented in the Governor's recent telegram may have given too startling an impression of the calls likely to be

made on H.M.G. One important conclusion which emerged from the discussion just mentioned was that much the greater part of the special expenditure is really more

appropriate to be included in a loan

schedule than as special expenditure in the ordinary annual estimates and that provided the Treasury are prepared to contemplate the issue of a loan in London if it cannot be raised locally (which it is still the intention to do as far as possible) there should be no difficulty about securing temporary advances against the future loan from the Crown Agents so that issues from the Exchequer in respect of this expenditure will, we hope, not be necessary. On the basis of this plan of action, there is no need, therefore, to reconsider the estimate

already presented to Parliament. As to the

more distant future, revenue seems to be

coming in fairly well and if the local

government act on our strong exhortation to increase taxes, it is not too optimistic to

look forward to the budget being balanced so far as ordinary current expenditure is

concerned inside a year or two.