Whitehall
Telephone No.: XXXXX 1234.
1
26 MAY 1932
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please quote Regd. No.
(201
Dear Cowell,
TREASURY CHAMBERS,
WHITEHALL, S.W.1.
24th May, 1932.
! We assume that your official letter of the 3rd May (92639/32) about the finances of Hong Kong was not intended
to elicit formal Treasury approval of the Treasurer's pro-
posals, and that your desire was to keep us in touch with
the situation, and to give us an opportunity of commenting
if we wished. We should prefer, therefore, to convey our
views to you semi-officially.
2
Your letter and the Treasurer's memorandum refer
specifically to loan finances, and it may be that we are
expected to comment only on what I might call the technique
of borrowing.
But perhaps we may be allowed to make one or
two general observations.
こ
The Treasurer's proposals assume that in the
immediate future, revenue will balance ordinary expenditure
without recourse to surplus balances, and, moreover, that over the next few years, a "normal" expansion of revenue may
H.R. Cowell Esq., C.M.G.,
Colonial Office.
be