CO129-606-4 Hong Kong Loan- government grant 1-4-1947 - 2-3-1948 — Page 78

five years.

can be drawn up in the Colonial office of the Colony's

liabilities and its financial position over (say) the next

Such an appreciation would include the best

estimate that can be given of the Colony's liabilities for

war damage compensation and rehabilitation of Government

property and also for the expenditure on the local volunteer

forces referred to in savingram No.464 of 30th December 1946;

expenditure on passages of ex-internees referred to in

Sir Mark Young's despatch No.172 of 12th November 1946;

expenditure on relief in Hacao of refugees from Hong Kong; and

any other types of special expenditure which arose out of the

war and which in soms cases is still continuing. It would be

convenient if attention could be drawn to any particular

case or cases where it is considered political difficulty is

likely to arise in charging the expenditure finally to

Hong Kong Government funds. I suggest that the appreciation

should also take into account the possibility of funds being

required for an international airport, the cost of which

might be taken as £4,000,000 for this purpose. I note from

paragraph 7 of Sir Mark Young's telegram No.533 that it is

proposed to address me in more detail in regard to the

financial position generally and doubtless in doing so you

will take the above factors into account.

5. The appreciation should also allow for any increase in

revenue arising out of increasing trading activities and also

of additional taxation, such as for example Income Tax.

6.

There is one other point to which reference should be

made in the appreciation. In paragraph 2(iv) of the

Appendix to War Office letter 16/Abd/1693 (C.A.4) of

23rd February 1945, a copy of which was referred to in the

communication to the Commander-in-Chief, No.6258 of

/17th October 1945

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