CO129-597-3 Estimates 1950 22-2-1949 - 3-11-1950 — Page 279

30.10

INWARD TELEGRAM

TO THE SECRETARY OF STATE FOR THE COLONIES

#

COPY FOR RESET FROM HONG KONG (Sir A. Grantham)

D. 22nd February 1949. R. 22nd

TION

24 FEB

11

11.45 hrs.

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275 1

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No. 173. Confidential.

Budget exchandi In tpenditure 1948-9

wm $150 tum

I hope to present the Estimates for 1949-50 to the Legislature early in March. Expenditure is expected to total approximately (81794 million made up of personal emoluments 8451 million plus 828% million high cost of living allowance, other charges 870 million, special expenditure 15 million (including $2,000,000 C.D. and W. expenditure), public works extraordinary 8181 million.

2.

Deteriorating position in South East Asia and consequent need for measures to meet possible threats to the security of the Colony have thrown heavy strain on Hong Kong's finances, more especially as this has happened at a time when allocations from the rehabilitation loan are becoming exhausted. (826,000,000 of expenditure provided for will be related directly or indirectly to security. This includes Defence Force 834 million, Police 20,000,000, as compared with 15 million during the current year. Police figures are exclusive of expenditure from loan funds of which $6 million will be spent during 1949-50 on reconstruction of police stations destroyed during the war.

3.

Expenditure under public works extraordinary covers completion of the most important items in this year's programme, and also provides for some $9,000,000 rehabilitation expenditure which would have been a fair charge against the loan had sufficient balance been available. An additional Tuberculosis Clinic has been provided for, together with £1,000,000 to enable a start to be made on police quarters for the rank and file. $875,000 is provided for the reconstruction of runways at Kai-Tak. The R.A.F. have ceased to be responsible for maintenance, and unless major reconstruction work is put in hand it will be necessary to close the air port. $2,185 thousand has been received for reclamation scheme already started and $1 million for drainage and roads in the area to be open(ed) up for new buildings.

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Revenue is expected to total just under $179 million including grant from H.M.Government of $16,000,000 in respect of war expenditure settlemeut, revenue will therefore only amount to 81634 million. is considered, however, that this Government is amply justified in budgeting for expenditure up to the full revenue figure as quite apart from security expenditure $9,000,000 under public works extraordinary would be more properly chargeable to the Rehabilitation Loan while a

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Budget extinde for revenue 1948-9 $1512

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