Alt. on 15517/48 22
Q
10
Mr. Paskin.
1. I think these two drafts are self explanatory when read with (17). They follow minutes which I do not think you need bother to read and have been discussed with, and agreed to by, Mr. Bourdillon.
A point of importance which I raised with Mr. Bourdillon was that (22) has just gone out to Hong Kong (among other non-African colonies). It shows that the Secretary of State's financial .control over African Colonial Governments is about
to become considerably more lenient (approval of the Estimates and supplementary Estimates will not be required) than what is now proposed as a relaxation of control to Hong Kong. This may make Hong Kong ask at once for the same thing. Unless therefore we are quite sure we shall not wish to, or have to, yield if such a request is made, why not seek to forestal Hong Kong's come-back, give full measure now, and perhaps recover for H. M. G. a little of the goodwill which has been lost over the recent financial settlement of war liabilities? This would be better than a grudging acquiescence if pressed by Hong Kong.
Mr. Bourdillon thought that there was a good case for not at once relaxing supervision of Hong Kong's finances to the full extent proposed for the African Colonies in that she could not yet be said to have reached financial stability after the upheavals of the war and enemy occupation, and he pointed out that the proposals for the African Colonies will not come into force during the current financial year (though I note that this will presumably mean that approval of the Secretary of State will not be required for next year's Estimates). On the whole therefore Mr. Bourdillon would prefer to propose this interim measure of relaxation for Hong Kong now, but be prepared to consider the African model at the first review next April. I accepted his advice.
31.8.48.
Yes.
ague
that it wr. be fuiters
to pursue this point further
At this
stage.