10 12.
149
In view of the assistance which will be required
from U.K. funds to meet the budget deficits until such time as revenue has been sufficiently increased to
benefit under such assistancej-also the possibility
that some form of Treasury guarantee may be required
for any loans raised; and thesedky that, the
Treasury may wish that
the sums advanced from U.K. funds,
£250,000 (1945/4) £600,000 (1444/5)
to meet Hong Kong expenditure during the war amounting
to A
will 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
the Colonial offal
Vrensiy Achiees
Gavel
the
and subsequent correspondence, copies of which are enclosed;- Treasury letter 2nd March, Colonial Office letter 5th March,
and Treasury letter 7th March.
I should
Home
the
various
the Treasury
letter
SECER.
grateful for four comments,
pornto
raised
of 7= March 1946.
£1,650,000
6
(1915%)
54126/1/45
89011 54126/1/05
}