54776/3/46
Coda
OUTWARD
TELEGRAM
40
TUMEDIATE No.534
TO HONG KONG (Sir M. Young)
FROM 3. OF S. COLONIES
Gent 22nd July, 1946. 13.15 hrs.
Your telegram No.570 of 12th July.
Hong Kong Estimates.
I am grateful for very full information given bub oving to the short time cvailable for a reply I can only comment generally at this stage. I had intended to comment more fully on the Commander-in-Chief'e telegram 0.A.3668 of 3rd April but deferred doing so perding consultation with Follows. This has now proved to be impossible and I will comment as fully es possible after discussions with it is hoped to arranged with MacDougall on July 26th.
2 $
Keanwhile, I am afraid I cannot be committed to approving the total expenditure indicatod in your Selegram under reply; nor to the procedurs suggested in paragraph 7 whereby the whole of the defici♪ which, in pert, arisen out of expenditure properly chargeable to loan should temporarily be met by H.M.Q. Whilst in principle I am strongly in favour of a loan being raised an soon 28 convenient, I sho alë require more information which is no doubt in your detailed despatch as to the poecibilities of wieing a loa Locally, ita terme and the purposes for which it will be applied, before I coul¿ cena to any definite conclusion; if on the other hand, the expenditure were to be fluanced by H.M.G. I would similarly need full faformation before I could be committed to it. In the circumstances, ï samot give a decision on the matter until receipt of the detailed doespatch plomásed in your
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