F
Despild. No 96
Sir L. Monson
Your minute of 7 December.
1 Kink (6)
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2. When I was in Hong Kong the Governor implied that it was kii not possible for the Foreign and Commonwealth Secretary to issue "instructions" the implementation of which would involve expen- diture of Hong Kong funds; the approval of the Legislative Council had to be obtained for any public expenditure and it was simply not possible these days to force measures through the Council using both his original and casting votes. He referred to a change in procedure since 1958 and when I returned to the Office I looked up the previous papers.
3. You will see from folio (10) in the file FED 489/400/01 attached, that a despatch was sent to Hong Kong on 14 January, 1958, the effect of which was to give the Hong Kong Government more control over the Colony's finances. Subsequently, a number of amendments were made to Colonial Regulations. that time I did no more than note that the proposed arrangements for both formal and informal consultation were clearly not
Xlasi Sepreke being followed by Hong Kong.
Ho
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4. On receipt of your minute of 7 December, I called for all the old papers on financial devolution, going back to the Colonial Office despatch of 24 September, 1948. This is at HK+ Paukee De
(25) in file 54126,attached. I have a bundle of other files "Finances -Treasury Enter" here but I don't think you need bother to read them. The
sequence of events seems quite clear. Up to 31 March, 1948* HM Treasury exercised control over the finances of the Colony. From 1 April of that year until the arrangements set out in the despatch of 14 January, 1958, were brought into effect, the procedure was as set out in the despatch of 1948. It is also clear from the documents I have read that both the 1948 and 1958 arrangements for Hong Kong were in line with the arrange- ments proposed for other dependent territories at about the same time. I do not consider, therefore, that the 1958 despatch can be regarded as an important constitutional convention. What has happened of course is that successive Financial ! Secretaries in Hong Kong have stretched the authority granted
in 1958 to such a point that today, short of sacking the Governor, the Foreign and Commonwealth Secretary has virtually no control over the internal affairs of the Colony. I have checked with Mr. Wright of the Economists Department and he has told me that during his time in the Office (some 4 years, I think) he cannot remember ever having seen any document con- taining the type of information referred to in paragraph 3(a) of the despatch of 1958. On the other hand, in my experience, I think it would be true to say that Hong Kong does follow the
/instructions
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*
Hong Kong
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I think between re-occupation and 31/3/48. When I was decking bato
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In The Cohere's office in 1940 four to the Jepara viapan refernce to the Treasing of Ak franced where.
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