Gay 7 minuter
54126/6/48
8
See (17) + (18)
Sir S. Caine.
I
Mr. Serpell telephoned to me the upshot of a lengthy discussion with Mr. Crombie at the Treasury which he attended this morning with Mr. Pitblado, and he subsequently dictated to my shorthand-writer the attached draft reply at "A" regarding relaxation of Treasury control. subsequently discussed with Mr. Bourdillon, who saw no objection to the proposals. I told him that I should prefer to exclude the words "similar to that now in force in Malaya" in the telegram to Hong Kong, as one of the things that Hong Kong dislikes so much is the feeling that she is tagging on behind Malaya in such matters. I would see no objection, however, to telling the Governor in a personal telegram that this arrangement was based on the Malayan arrangements, which was working very well.
I think that the Treasury have gone a considerable way to meet us. Mr. Serpell wishes to know whether we have, in fact, any comments or not.
I now submit two draft telegrams conson. which should get off at the earliest moment. Mr. Bourdillon does not want to see these drafts as he has had a talk with Mr. Pitblado and is already aware of their contents. After action the file should be recirculated to Mr. Wallace quickly for a further telegram giving fuller details of the new arrangement. This can be concerted with the Treasury and Mr. Scarlett.
Life.com 54126/4/48
Dft.com 47244/1/45
(Sgd..) J.B. Sidebotham
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No.611
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