CODE 18-77

SS 10/76

Mr Green

ll asked exten

Hong Kong and General Department

Reference

HKA 434/15

RECEIVED IN SY NO. 51

2 3 MAY 1978

DESK OFFICED

INDEX

PA

REGISTRY

ction Taken

وله

ماد

Be

GOVERNORS OF DEPENDENT TERRITORIES

LAST

REE.

3

NESE

REF.

16

1. Your minute of 11 May to Mr Farrar PPD and his reply of 15 May refer.

2.

New schemes involving additional expenditure to the FCO have to be financed either from additional PES provision given to us by the Treasury or from savings within the existing PES provision. The Treasury would almost certainly not agree to provide additional provision for your proposals regarding payment of governors. As to financing the proposals from savings, the position is that it is becoming more difficult to find savings and any that materialise are quickly utilised by PPD and PSD for what are considered the priority commitments.

3. I must admit to knowing virtually nothing about the present arrangements for determining the level of contributions made by the local governments to governors emoluments. I should be grateful if you would let me know how the rates of contributions are determined and whether there is any procedure for reviewing the rates annually to see if they can be increased. As far as possible we should be looking to reduce our commitments rather than increasing them.

F. Callaghan

F Callaghan

Finance Department

22 May 1978

c. Mr. Farrow PPD.

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