CO129-606-4 Hong Kong Loan- government grant 1-4-1947 - 2-3-1948 — Page 82

07

(55081/18/46)

(55077/2/47)

take his

arom

thu

hormcilities of funds beniz rezannes free

Bli cost

(53252/47)

Transfer to

The enakim darse, whelk the appreciation

Should include

theropodā position to consider your request for a grant by

H.M.G. to Hong Kong, it will be necessary to have

a fuller appreciation than can be drawn up in the

Colonial Office of the Colony's liabilities and its

financial position over (say) the next five years.

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 tubuh savingram No.464 of 30th December 1946; expenditure

the work youngs on passages of ex-internees referred to in

despatch No.172 of 12th November 1946; expenditure

on relief in Macao of refugees from Hong Kong; and

any other types of special expenditure which arose

out of the war and which in some 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 include prevision for the

include a reference to cost of the /construction of an international airport, which might be taken as £4,000,000 for this purpose.

dis Thank Young's I note from paragraph 7 of our telegram No.533 that A is you 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.

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. It need not include

any provision for a contribution towards the net

cost of the military administration, Xi.e. the

Xi.e.

gross cost, less any receipts from the sale of

supplies