for certain specific services and in this case it might be possible to take over certain services in this way up to the amount of the probable deficit. This might be a more satisfactory arrangement in that we could possibly pick out items for which a reasonably satisfactory form of account could be prepared and audited. Otherwise I am afraid that it might mean that the Accounting Officer would have to defend issues from our funds to meet expenditure over which there can be but a very limited control from London.
Another important aspect of this question, whatever method of assistance is granted, will be that of Treasury control over expenditure. As I have already said a form of control within the framework of Miscellaneous 460A would be necessary if a grant in aid were given but in any case the Treasury would presumably expect to be consulted with regard to all important items of expenditure. The extent to which they would be prepared to allow us discretion is a matter which would have to be settled with them.
What I havesaid above tends to emphasise the rather complicated questions which this request for assistance throws up but I think, in all the circumstances, the grant in aid method would probably be the easiest to follow. It is, of course, for us to make a constructive suggestion to the Treasury, supported by the necessary data, as to the exact form the assistance should take and I suggest that we should ask them to agree to grant in aid. It is in any event necessary to supply the Treasury with the fullest possible details of the financial position
including particulars of realisable and unrealisable investments and other income so that the need for
ORAC
assistance could be clearly seen. I also think that we should suggest to the Treasury that an early discussion should take place to fix up the
details.