CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 85

8.

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retired and only one officer will be paid in respect of each post. Wartime departments such as Supplies, Trade and Industry and the Custodian of Property's Department will have been disbanded or

Personal Emoluments will at least very materially reduced. therefore be at more or less their normal figure for the post- war period but this figure will of course be greatly in excess of the 1941 figure, as the cost of living allowances will still be necessary and the Folice will in all probability still be

Nevertheless if all expenditure nearly 200 over establishment.

on reconstruction is met from loan funds the deficit, though doubtless large, should not be outside the bounds of reason.

13.

I have therefore come to the conclusion that the proper

It time to float a loan would be during the first half of 1947. seems to me that this would be preferable from every point of view but it is of course dependent on the deficit up to the 31st March 1947 being met in the first instance by His Majesty's Government. Any amounts so advanced would be treated as a first charge against the new loan. Mr. MacDougall will be raising this point during the course of his discussions in London and I hope that it will be possible to accept the proposal. I realise that it may give rise to some inconvenience in view of the fact that the estimate of the deficit contained in my telegram No.297 took no account of expenditure which it was then the intention to meet from loan funds. It may,be, therefore, that some supplementary provision in the Colonial Office estimates will be necessary.

Whether a loan is floated this year or next, it is,

14.

I think, clear that the operation must be carried out on the London market. I am advised that it would not be possible to float one locally at a rate of interest lower than 3%.

Even