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HONG KONG LEGISLATIVE COUNCIL.
One million dollars are being devoted to the repair of sea walls, ferry piers, etc. Just under one million dollars is required for the filling in of tunnels. 134 million dollars is being expended on drainage works including anti-malarial drainage. 21⁄2 million dollars is required to restore roads, bridges and street lighting to reasonable condition. Over 22 million dollars has been provided to bring the Water Works to a reasonable state of efficiency and two million dollars will be required for the purchase of motor transport.
Provision is made for a Development Secretariat under the able and energetic direction of Dr. Herklots. This will absorb the former Botanical and Forestry and Fisheries Research Departments. The new department will provide for greatly increased services in respect of Agriculture, Forestry and Fisheries, all matters of the first importance to this Colony. Dr. Herklots is now in the United Kingdom and has been discussing some of the financial implications of the new department. It is hoped that this is a sphere in which help may be looked for from the Colonial Development Fund.
ment.
Provision is made for the continuance of the P.R.O.'s Depart- Such a department is now a normal feature of Colonial Administrations and it has fully justified itself here since its establishment under the Military Administration.
We are faced then with a total estimated expenditure of $160,751,665 against a revenue figure of $51,308,300. Some $80,000,000 of this expenditure represents a first instalment of the sums which will be required to repair the ravages of war. The inflated costs both of labour and material which are indirect results of the war account for much of the balance. Thus we are left with a deficit of $115,425,965. This is a large sum and represents an extremely serious commitment for a territory of this size. The fact that it will be repeated next year though probably not on the same scale makes the position even more serious and the charges. on the loan required to cover such deficits will represent a very heavy drain on our financial resources in the future. In fact it represents the limit of the borrowings which this Colony can with prudence undertake. I am making this point as it may be argued that we should have recourse to further borrowings to provide funds for the payment of compensation in respect of damaged property in the Colony. It is, I think, obvious that this would be out of the question at current market rates.
There is no magic remedy for the state of affairs which I have disclosed. The rehabilitation of the Colony must go on and it must be carried out as quickly as possible for, if we can stage a quick recovery, a period of prosperity will almost certainly follow. But to attain that quick recovery we will at first have to expend some 200% more than we receive. The position can only be restored
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