53652/48.
T.F. 16/10/03
Colonial office,
The Church House,
Great Smith Street,
S. N. la
34 35 144
9th December, 1948.
Dear Russell Edmunda,
Thank you for your letter of the 23rd November com enting on the first periodical report received from Hong Kong regarding its financial position. I enclose a copy of our reply. As you say, the position seems reasonably satisfactory and if future reports continue to indicate a satisfactory position we may not need to send replies to them. AB however this is the first of the quanterly statements for which we asked in connection with the relaxation of con-rol, a fairly full reply has been sent.
2. As regards your second paragraph a note has been made on the relevant file that you would like to be kept informed of the progreas of these negotiations.
3. As regards your third paragraph we do not think we could, in advance of the Governor's communication regarding any proposed increase in the cost of living allowances, inform him that any such proposals would be strongly questioned. Obviously we must examine any proposals on their own merits. In these circumstances, I hope that you will agree that we could not at this stage say more than is said in paragraph 5 of the enclosed savingram,
COLON L
RUSSELL EDMUN S.
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