15
x sent forward separately.
Mr. Lloyd
Mr Came
Sin G. Gales
VI submit a draft reply to No. (32).
Before receipt of this letter we had already discussed the matter with the Treasury Representatives on the 19th of July, and had arranged a further meeting for the 26th of July, at which, the Colonial Secretary, Mr. MacDougall was to be present. The Treasury representative was aware of the reason for the non- despatch of the telegram referred to in No. (32). Briefly, before action could be taken on
Mr. Winnifrith's letter at No. (19), a telegram was received from Hong Kong on which urgent action had to be taken, as provision had to be made in Colonial Office supplementary estimate for July. After this was cleared up, we thought there might be,advantages instead of sending a telegram, arrange for the Financial Secretary to come to this country and discuss the matter, as a similar procedure had been very successful in dealing with the Malayan Government finances. A telegram was sent to the Governor on the 19th of June making this suggestion. The Governor,
in reply, said that he could not spare the Financial Secretary but suggested that we should discuss the matter with the Colonial Secretary who was proceeding on sick leave to the U.K. The 26th of July was the first opportunity that could be arranged for such a discussion after the Colonial Secretary's arrival. As a result of that meeting at which the Treasury representatives were present, a long telegram has been sent to the Governor giving him the combined Colonial Office and Treasury views on Hong Kong finances. The proposal that the Financial Secretary should come to this country to discuss the matter had, in fact, held up the despatch of the telegram. Nevertheless, the discussion has proved to be useful and I do not think any great harm has been done by the few weeks delay.
Bolnemer
29/7.
Recus
drags 10
Y Gyanto
14/460
active taken
रुन
30%
I have added a paragraph on the substance of the finance position, since the present draft deals primarily only with procedure.
کے
31.7
31.7.46.