CONFIDENTIAL
O
of petition under Colonial
Colonial Regulation 169. If Chapter VIII no longer applied to Hong Kong, then
then the Secretary of State would have no standing at all in the territory's finances or audit of accounts. I do not mean to suggest that it
it is likely that the Secretary of State would ever need to intervene in Hong Kong's financial affairs but, in view of his ultimate responsibility to Parliament for all Hong Kong affairs, the Secretary of State should retain such powers as he has under Chapter VIII.
4.
difficulties in completely. However, the light of local conflict, then local I aw prevails.
tak en
In considering this matter we have, however, your very valid point that during the correspondence between Hong Kong and the FCO over the Public Finance Ordinance in 1979 it was made clear that it was your intention that the Ordinance should supercede the relevant Colonial regulations. I have listed our abandoning Colonial Regulations the Regulations are interpreted in law; and if there i s doubt or Would therefore instruction to the effect that in matters of financial administration, officers are bound to observe in full the provisions of the Public Finance Ordinance 1983, and that these provisions supersede Chapter VIII of Colonial Regulations to the
to the extent that the latter are inconsistent meet your requirements.
would have no objections to such an issued.
we
a local
If so,
instruction being
CONFIDENTIAL
A C Galsworthy
Hong Kong Department
B