ADMINISTRATION IN CONFIDENCE
10us"
27 July at folio 28 - though I see that Mr Duff, who should know better than me, thought it "ridiculous"
his minute of 31 July at folio 29);
- or ii.
We should accept the ODM's suggestion of their transferring funds to the FCO, and we should not be over-fussy about charging the expenditure to the Governors expenses sub head, even though this will. mean stretching the previously accepted definition;
or iii.
Governors should be told to stop being so pussy footed and should ask for whatever they think they need from their local governments, in the knowledge that the extra money will be forthcoming from the ODM via budgetary aid without any corresponding decrease in funds for school milk or local hospitals, etc.
3. Of these possible solutions, the first would be the most satisfactory and the least trouble. The second should prove perfectly workable but would be more cumbersome to administer. The third might have been okay if we had taken this line from the outset, but would now be seen by Governors as a great let down and should therefore be regarded only as a last resort. The meeting may of course throw up other possible solutions.
7
4. If we are to have a meeting, the question arises of the level at which it should be held. I am sure that if we asked him, Mr Stratton would agree to chair it, in which case we could invite Mr Kirkness, the ODM's Principal Finance Officer, to attend. But I feel that it would be making too much of an issue to take the question to this level, and I suggest that it would be better if you were to chair a meeting with Mr Duff and Mr Fry, and possibly a
representative of the FCO Finance Department who could provide any necessary technical advice. If such a meeting reached deadlock, we could then consider taking it to a higher level.
1
17 October 1978
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W.E. Chancill
WE Quantrill
Hong Kong & General Dept
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ADMINISTRATION IN CONFIDENCE
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