CO129-623-8 Estimates of Expenditure- includes a report for the year ending March 1951 1-12-1949 - 31-3-1951 — Page 252

362

49

HONG KONG LEGISLATIVE COUNCIL

they are available to advise on the relative merits of new services or schemes competing for inclusion in the budget lightens my task to no inconsiderable degree.

Expenditure, as provided for in the estimates as now printed, totals $199,051,037, but there are a number of last minute adjustments which it will be necessary to consider in Select Committee. This represents a deficit of $7,071,557 which may easily be increased in Select Committee to $7 million.

There are moreover certain liabilities, indeterminate at the present stage, which must be taken into account. In the first place, there is the question of new piers and reclamations for the ferry service. Everyone is, I think, aware that the Star Ferry Company is negotiating for a new franchise with a view to improving their service generally. This will involve new piers on both sides of the harbour, and extensive reclamation. The cost will be very high indeed, and although no decision has been reached as to which party will pay for the piers, the cost of reclamation will certainly have to be met by Government. Now, the new pier, anyway on this side of the harbour, cannot be started until the reclamation has been completed, so if we are to have an improved ferry service, which is so badly needed, within a reasonable time, it is very important that work on the reclamation should be pushed forward as rapidly as possible. Unfortunately there are a number of difficulties which must be overcome. The Telephone cables and one belonging to Cable & Wireless are all brought ashore at this point. It will be necessary to move at least the telephone cables and this will mean that they will have to be lengthened. There is sure to be a good deal of delay in obtaining the necessary cable, but this will be expedited as much as possible. In the meantime, it will be necessary to make borings to determine the character of the sea bed. A sum of $20,000 has been provided for this under Public Works Recurrent but the foundations of the pier will have to be interlocked with the wall of the reclamation, so not very much can be done until the necessary drawings have been prepared. If all goes well, however, it may be possible to make a start on the reclamation before the end of the financial year, and in this event the general view will no doubt be that we should find, by supplementary vote, whatever money may be required, rather than delay the commencement of the work until the next financial year.

The other commitment for which we may have to find money before the end of the year, is in respect of our contri- bution towards the cost of the reinforcement of the garrison. This is quite distinct from any question of an ordinary defence contribution, and relates solely to the present need for strengthening the garrison above its normal size. It is obviously right and proper that this Government should contribute within its means, and the matter has been the subject of negotiation for some little time. I should prefer not to go into details at this stage regarding the negotiations, but it is obviously