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local administration adequate guidance on financial
policy and particularly on such matters as taxation and borrowing. I see that Winnifrith in his letter
of 31st May suggested a number of amendments to a
long draft telegram which was intended to give
guidance on these matters, but I am told that owing to a series of mishaps this telegram was never sent
off. Meanwhile Hong Kong are introducing en
Appropriation Eill and, having been left in complete ignorance of Whitehall's views, are expecting the Treasury to provide over £7 million. I hope that steps will now have been taken to make it clear that we cannot accept these commitments, but the present
situation must be as unsatisfactory for the Hong
Kong Government as it is for the Treasury and I hope
that energetic steps will now be taken to give the local Government proper guidance and to reach
agreement as to the amount of United Kingdom
assistance