[ETIAOS]

Reference........

་་་...་་་་་་་

RESTRICTED

HKK 100/4

A

B

C

MCC Leeks, New draft altashed Ch 2714 Mr Eh

Ehrman

m Galowathy on these regulations

are not to do with real control beat

with minutiae. I therefore wee

problems with proposed reply

HONG KONG FINANCIAL ADMINISTRATION

1.

no

Hong Kong have

proposed that Chapter VIII of Colonial Regulation s (Finance) should be regarded as having been superseded in ong Kong by the Public Finance Ordinance of 1983.

2.

The Dependent Territories Adviser, Mr Wallace, has been consulted but is reluctant to accept Hong Kong's suggestion in its entirety as this would result in the Secretary of State having no standing at all in the territory's finances or accounts. However, as Colonial Regulations are interpreted in the light of local law, and where there is doubt or conflict local law prevails, Mr Wallace has come up with a compromise. На has suggested that in view of the uncertainty that exists in ong Kong as to which provisions of Colonial Regulations have been superseded by the Ordinance a local instruction should be issued to the effect that in matters of financial administration officers should observe the provisions

the provisions of the Ordinance and that these provisions take precedence over Chapter VIII of Colonial Regulations. Mr Wood of Legal Advisers has agreed with this proposal but with the word precedence replaced by supersede.

3. A draft reply to ..ong Kong based on the advice received from the Dependent Territories Adviser and Legal Adviser is attached. Mr Wallace and Mr Wood have been consulted but have no comments

the draft.

on

28/i

HKK 100/4

RECEIVED IN REGISTRY

2 3 DEC 1985

J. Thomas.

THY

Taken

J Thomas

Hong Kong Department

CODE 18-77

AWO Ltd. 7/84

27 November 1985

k.

As I mentioned

двезд

to you.

I have had for the thoughts about this: but have come to the same conclusion. There is an

agument abat HK sht be as francially

HIEG

тве

autonomous

possible but do not this that the s. gs.

as

wander

'Control' Colomal fine

world direct rule

rendual

finances

es under

powers

Col Regs

in extremme (withal Thick be

مسه

presumably freed to rely upon butt contains a

emergency measure/ kind). The draft

f

صيام

RESTRICTED

compromise! giving HK what it needs defects, but not

a fother phrase, Howing out

to coin

baby with

both water.

ск

2424

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