in the territory's finances or audit of accounts. I do not mean to suggest that it is likely that the Secretary of State would ever require to intervene in Hong Kong's financial affairs but, in view of his ultimate responsibility to Parliament for all Hong Kong affairs, I doubt if we should agree to removing from the Secretary of State such powers as he has under Chapter VIII.

1 July 1985

HKK 10015

VEC IN REGISTRY

-9 OCT 1985

For

Kathryn Peacock

W W Wallace

West Indian and Atlantic Department

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