144
!
10.
A
In view of the assistance which will be required
frofed.K.
from U.K. funds to meet the budget deficits and the
possibility that some form of Treasury guarantee may be
required for any loans raised; and that the sums advanced
from U.K. funds to meet Hong Kong expenditure during the
war amounting to £250,000 (1943/4), £600,000 (1944/5),
and £1,650,000 (1945/6) may have to be treated as a loan;
Treasury will require to maintain some degree of control
over Hong Kong finances. The exact form has not yet been
decided upon but this could suitably form the subject of
discussion with the Treasury after Follows' arrival.
In this connection I would refer to the correspondence
mentioned in the C.-in-C's telegram CA.2210 of 22nd February
and subsequent correspondence between the Colonial Office
and the Treasury, copies of which are enclosed: - Treasury
letter 2nd March, Colonial Office letter 5th March, and
Treasury letter 7th March. I should be grateful-for your
comments on the various points raised in Treasury letter
of 7th March, 1946.
6 54126/T/45
8, 9 and 11 54126/1/45.
*
SECER.