27

Al

B

Mr. Taylor has spoken to me about the

draft reply to No.52. I am afraid that we cannot comply with the Crown Agents request. When I drafted the Order I was told that it was required to validate payments already made by the Crown Agents with the approval of the Secretary of State, for the purposes specified in Clause 2(1). I accordingly inserted Clause 6, which gives the Order retrospective operation from the 26th of December, 1941, and which is quite sufficient for this purpose. I was not told that it was necessary to validate any payments made by the Crown Agents without the approval of the Secretary of State. If such payments have in fact been made they cannot now be approved under this Order.

Further, I understood that every payment or every class of payments, which it was intended that the Crown Agents should make under Section 2 would be specifically approved by the Secretary of State, and under the section as it stands, the Secretary of State cannot, in my opinion, give a general approval for application of Hong Kong moneys for any of the purposes specified in that section as respects either past or future payments.

approval of payment

date of the ader still

1

necessary

K

to

qui it a gaming

a class, gwen lefer the hold good It is with acdinall

28.10.42.

Ae Babon.

has more

banes

levi

xoge

So that if any particular payment

26/12/42 has been

S.JS, anchority

made

d. C. A without

there the matter will han

to rest unless the O-in. I is amended.

We must give the

the C. A. authority.

use the intent on the Exchange Fund. I possume that much can be clone 20 is not etiar to me now what we

be clove under this Gray,

may

M. Robuts Wray.

E. Rgly

2/1

make at a meeting held in to Gent's room today, c.a. representatives stated that no payments had been made without S. of S. authority, This question therefore does not arise.

or 2.0.

Docs revised draft cover points raised in your Merinte of 28/10/42 ?

B. Fodustall

18/11/42.

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