2-7
INWARD TELEGRAM
TO THE SECRETARY OF STATE FOR THE COLONIES
There are also further large commitments for the future on improvements to water supply.
8.
While it would be legitimate to meet all this capital expenditure from loans, some of it could not be charged to the Rehabilitation Loan as it represents new work and not replacements. However, the figure of $150,000,000 authorised for the Rehabilitation Loan has not in practice proved adequate for rehabilitation of the Colony, and included in 1949-50 Estimates and to be provided for in 1950-51 will be some 835,000,000 of expenditure which would have been a fair charge against Rehabilitation Loan had sufficient balance been available,
9.
It
End
I should be grateful for a very early indication of your views on the question of further borrowing. will no doubt be pointed out that the public debt of the Colony is very modest, but I realise that this is not the main consideration from the point of view of H.M.Government and that the more important aspect is raising of loan on the London market and question of bearer issue.
As you are aware, only $50,000,000 of the loan has actually been issued, and it has so far been possible to finance further expenditure from surplus and floating balances, thus Baving interest charges, The prospects regarding further (5) local issues are set out in my confidential savingram No. 831 (19) on (4) to Bourdillon dated 2nd December.
of 9th December and in a demi-official letter from Follows
10.
I propose to pursue the question of an increase in rates with Unofficial members during the next few months. The matter is bound up with question of an increase in rent of business premises. If control were modified so as to permit rent for such premises to be increased to 100% over prewar figure, the yield from the rates at present percentage would be increased by $2,500,000.
11. The scale of expenditure particularly on personal emoluments, continues to cause me much concern. The constant demand for improved safety measures in civil aviation render further increases in the staff of the Civil Aviation Department and the Royal Observatory inevitable. Economies in staff have however been effected in some other departments (see paragraph 15 of my confidential despatch No.300 of 11th December), and now that efficiency expert is at long last arriving, I trust that a careful review of the establishment and cutting down of the functions of departments which are not strictly necessary will yield greater economy.
(5) 54126/4/4
(3)
Coprès to
Col. Russell Edmunds MR.B. Moberly.
Treasury
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