SECRET and PERSONAL
Foreign and Commonwealth Office London SW1
D TE Roberts Esq CBE QC
Colonial Secretary
Hong Kong
Telephone 01-
Your reference
Our reference
RECEIVED IN REGISTRY No. 51
13 NOV 1974
AKK
5/20
Date 12 November 1974
(41
VOTE ON ACCOUNT
1.
Please refer to Hong Kong telegram no 1090 of 4 November to the FCO. Although this is a technical financial matter, I am writing to you because of the problem raised in my paragraph 3 below.
2.
First though, the technical aspect. The proposal contained in your telegram under reference seems to us reasonable as it stands. It is usual for votes on account to be limited to a maximum period and related to the approved estimates plus supplementary estimates for the preceding year, the principle being that the vote on account should only be used to maintain services which the legislature has previously sanctioned. You may therefore wish to consider what maximum period you would require under the arrangement you envisage, and avoid reference to "the draft estimates" (paragraph 4 of your telegram under reference). The maximum period is usually expressed as 4 months from the beginning of the financial year or the coming into operation of the appropriation ordinance, whichever is the earlier. As far as paragraph 5 of your telegram is concerned, there are, as you know, precedents for modifying the application of other Colonial Regulations to Hong Kong, and we would see no objection to the application of Colonial Regulations 182 and 214 being modified accordingly if and when any formal proposal is submitted by you.
3.
However, your telegram raises another, important issue as far as 1975 is concerned. This is the timing of the Defence Review consultations. As you know, we have recently been under considerable pressure from the MOD and the Treasury to begin formal consultations with Hong Kong. We, for our part, have urged acceptance of the Governor's advice that formal consultations should be delayed until May, when the 1975/76 budget should have been out of the way. We hope that Ministers will accept our
SECRET AND PERSONAL
/advice.