17

Vo.39

No. (38) adds very little to our existing knowledge and most of the points have already been dealt with in our telegram at No. (35).

We can agree to X of paragraph 5 if this results in an earlier collection of revenue.

Paragraphs 9 and 10 are interesting as giving some estimate of the amount of war damage.

Paragraphs 13 and 14 are being dealt with on file 54126/4/46 below see minute on that file.

Paragraphs 16 and 17 deal with the question of H.M.G. making a generous gesture for Hong Kong. This point is being dealt with on 55358/46.

A copy of the despatch should go to the Treasury

as it will give them a general picture of the position in Hong Kong. It seems that apart from this, there is no further action which need be taken at the moment until we have received a reply to No. (35). except perhaps

inlerin draft telegram herewith.

reply

a

10

Lend

an

detnemer.

13/8.

Reave with

54120/5/46 on form of Tressmy control.

Gaine Mr. Lloyd

rgo Williams

-

I doubt whether it is necessary to wait for the Governor's comments on (35) which, incidentally, does not specifically ask for comments - before giving further consideration to the estimates in the light of the information given in the despatch. The telegram (35) certainly implied that we should do this on the receipt of the despatch.

I would therefore now go ahead with the further consideration of the estimates, in consultation with the Treasury, with the object of approving them, subject to any modifications and conditions which may be necessary, including presumably the prompt consideration of the points raised in (35).

I have put up alternative drafts to the Governor and to Mr. James in accordance with my views.

As regards the representations in paragraphs 16 to 18 of the despatch for a free grant from U.K. funds towards the rehabilitation of Hong Kong (in view of the free grant of £30,000,000 to Malta) it was recently decided, on a file which I sent forward yesterday, that we should not approach the Treasury with a view to free grants for these Far Eastern territories. I think that we must now

give

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