CO129-606-4 Hong Kong Loan- government grant 1-4-1947 - 2-3-1948 — Page 99

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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 beat 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 your

savingram No.464 of 30th December 1946; expenditure

on passages of ex-internees referred to in your 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 atill.

continuing. It would be convenient if attention

could be drawn to any particular case, or cuses

where it is considered political difficulty is.

likely to arise in charging the expenditure finally

to Hạng Kong Government funds. I suggest that the appreciation should also include provision for the

cost of the construction of an international airport,

which might be taken as £4,000,000 for this purpose. I note from paragraph 7 of your telegram No.533 that you propose 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

rease in revenue arising out of increasing

'ng activities and also of additional taxation,

It need not include ch as for example Income Tax.

y provision for a contribution

at of the military ahdnistrat

1pts

is the net