REF.
29
#
C
Reference....
.HKK. 5/20...
31.
Mr Pauncefort (G&GD)
PROPOSAL TO AMEND PRESENTATION OF CERTAIN ITEMS IN THE HONG KONG ANNUAL ESTIMATES OF REVENUE AND EXPENDITURE
1. In Saving telegram no. 190 of 6 August underneath, the Acting Governor seeks agreement to introduce a change in the procedure under which 3 listed items are in future going to be presented in the Colony's Annual Estimates of Revenue and Expenditure. The proposal is self-explanatory, The underlying principle being that expenditure which does not in the end fall on the General Revenue (because it is met under other provisions) should be removed from the sub-heads in the Official Estimates where they have hitherto appeared and be transferred to a 'below-the-line" account instead. All this seems perfectly legitimate and reasonable in itself.
2.
The Hong Kong Goverment has for some time been concerned over the growing proportion of the Colony's financial resources taken up by the Budget. The present proposal will of course not bring about any real change in this regard but the estimates will look smaller on paper though by what amount or proportion of the figures currently involved does not emerge. However they are clearly large enough to make some presentational impact or the Government would not be bothered to make this suggested change.
3.
It seems fairly clear however that the proposal would involve at any rate a technical breach of the provisions contained in Colonial Regulations 185 and 193 as explained in the last paragraph of the telegram. The telegram seeks agreement for exception from these 2 CR's in respect of the '3 Hong Kong municipal organs affected and I should be glad to have your advice on how this can best be arranged.
14 August 1974
MR Cartus
ahha
J K Hahna
Hong Kong & Indian Ocean Dept.
Gradinfant famo
w