From
TOL
CONFIDENTIAL
DHAFT LETTER
Mr. H.P. Hall
R.A. Dickinson Esq., C.M.G.,
Export Credits Guarantee Department, Barrington House,
59-67, Gresham Street,
London, E.C.2.
Hong Kong Turnål
In your letter reference SL/CW 24126/35 Pt. 3
of 5 October you raised various queries about the Governor's need to consult Legislative Council over
the security you require for the Government's guarantee.
2.
Letters Patent issued for Hong Kong provide
that the Governor legislates "with the advice and
consent of" the Legislative Council. The Legislative Council is accordingly the Colony's sole taxing and spending authority so that acceptance of the liability
envisaged in the presont proposals must be with the
Council's consent. The first step must be to put the
proposals before the Standing Finance Committee of the
Legislative Council; if the Committee agrees, a resolution will then be moved in the Legislative
of the proposals Council seeking the Council's approval in general
terms.
3.
The Governor could not conceal any details of the
proposals from the Standing Finance Committee; it
would be necessary to explain in full the nature of the
guarantee and the requirement that it is secured on
London assets of the liong Kong Gɔvernment.
Since some
unofficial members are known to be opposed to the
Tunnel project, there is sure to be debate in the
resolution before the Legislative Council; the
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