NATIONAL
Your Reference....54126/1/46
Treasury Reference. S. 52892/
Dear Palmer,
04.
TREASURY CHAMBERS,
GREAT GEORGE STREET,
LONDON, S.W.1.
120
19th June, 1946.
Would you please refer to your letter of the 14th June suggesting a supplementary estimate of £3 million for Hong Kong.
While we had no doubt that a fairly substantial supplementary for Hong Kong was inevitable, we had some doubt, in view of the rather sketchy telegraphic information available, whether we should be justified in inviting Parliament to vote so large a sum as £3 million.
>I discussed the matter with Bryant and after consulting you he told me that you were satisfied that Hong Kong would need at least £3,900,000 in all this financial year and I agreed to accept this judgment as sufficient basis for a supplementary estimate of £3 million.
As you mention in your letter, there is still some doubt about the items which may properly be charged to loan funds and the purpose of this letter is to suggest that you should inform Hong Kong that the inclusion of £3 million in the supplementary estimate is not to be taken locally as the acceptance by H.M. Government of all the items shown in the recent Hong Kong telegram as properly chargeable to revenue, but that you reserve the right to discuss further whether some of these should not be met from loans.
H. Palmer, Esq., 0.B.E., Colonial Office,
Yours sincerely,
MnJames