Tel. No. Whitehall 1234
NATIONAL
FOR DISABL
Your Reference 53652/47
Treasury Reference TR 16/10/02
Dear Falmer,
1
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39/2
TREASURY CHAMBERS,
GREAT GEORGE STREET,
LONDON, S.W.1
24th November, 1947.
TO ACCOUNTS DU
D2:2
RTMEN
(9) Flease refer to your letter of 30th July regarding the
Hong Kong Estimates for 1947-48. I must apologise for the delay in replying, which has been due mainly to the need to consider the general problems arising in connection with the Colony's finances.
2.I can now record our general agreement to your proposal to approve the Estimates subject to the reservations. made in paragraphs 2, 3(a) and
of your letter,
i
*
3. As regards Revenue we note that returns are buoyant and should be sufficient to meet the normal expenditure of the Colony. We note also the number of sources which, are being adopted for the provision of Revenue. It would appear that, with one or two exceptions, the question before Hong Kong is that of the extent to which these various sources will be employed. In the Colony's own interests it is clearly desirable that, particularly at the present time, Revenue, should be sufficient not only to cover normal expenditure but as much of Hong Kong's special expenditure as possible. This is all the more important of course in view of the increased cost of salaries which is likely to result from the recent Salaries Commission's report.
✰ While on this point I should perhaps stress the importance of proceeding with the re-organisation, with a view to economy, of the Hong Kong staff, the swollen state of which appears to be generally recognised. This would appear to be the chief method of reducing expenditure in the near future.
5. As regards C. D.. assistance,
You will by now be aware, of course, of the correspondence between your Finance Department and the Treasury on the extent to which C. D. W. funds should be used in Treasury controlled territories. I have had some discussion with pallace on this point since the Schedule of special expenditure to be met from Hong Tong loan funds appears to cover
1. Palmer, Esq.,
Colonial Office.
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