CO129-617-7 Development- possible implementation of CD and W Committee recommendations 18-2-1948 - 12-10-1948 — Page 33

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SIC COLONIAL OFFICE,

THE CRUNCH HOUSE,

GREAT SICH GEBET,

5.1.1.

13 July, 1948.

nir,

I have the honour to refer to your despatch No. 244 of the 23rd October, 1947, forwarding and commending the proposals of the liong Kong Colonial Development and ́olfere Committeo for the expenditure of a total of $500,000 from Hong Kong's Colonial Development and elfare allocation, on egricultural and fishery schemes for the New Territories.

2. I accept, in principle, the proposal to devote one- half of the total Colonial Development and elfere allocation for Hong Kong to the New Territories for schemes of the above nature, and I entirely agree that there is no reason why these schenee should not be considered in advance of plans for the romainder of the Colony, which are awaiting-air Patrick Aberorombie's report. in this connection I would suggest that you should consider reminding air Patrick that you are still avaiting receipt of his report. I note that the latter plans will also cover education and medical schemes for the ow Territories which are not provided for in the proposals forwarded with your despatch.

3. I regret, however, to note the opinion expressed in paragraph 3 of your despatch under reference that the Colony hes no foreseeable means of supplementing assistance from the Colonial Development and felfare Fote. I cannot emphasise too strongly that, in general, the money provided under the Colonial Development and elfere Vote is intended to be supplementary to the provision of finance for developtent by the Colonies thao- selves. I appreciate thet in the particular case of Hong Kong the full application of this principle may of necessity be modified by a muter of special considerations such as:-

(a) the possible hervy demando, some of which cannot be

readily calculated at the procent time, on the colony's financial resources,

ec

(b) the need to re-establish as early as possible the

necessary reserve funds to place the Colony once again on a firm financial footing, (I am at present considering, with the assistance of the nanoind

ocretary, possible cerns of occuring further revenue by increasing taxation in various directions and by. other methodo, and i shall be audrossing you separately on this point in due cource),

(c) the limite in the extent an. variety of development

projects which are imposed by the physical character of the olory, call the fact that it is already highly devoloped as compared with e.g., a large undeveloped

frican torritory,

etc.

otc.

/ (a)