ML 47244/1/48
COLONIAL
OFFICE
CIRCULAR DESPATCH 4
THE CHURCH HOUSE
GREAT SMITH STREET LONDON, S.W.I
16th June, 1948.
Sir,
54
Financial Devolution in Africa.
The Conference of African Governors held in London last autumn considered
the relations between the Secretary of State for the Colonies and Colonial
Governments in the sphere of finance and addressed itself particularly to the
relaxation of the formal controls exercised by the Secretary of State in this
sphere. I am in agreement with the general recommendations of the Conference
on this subject and consider that the changes set out in this despatch, which
will apply to all Territories in Africa whose finances are not under the control
of His Majesty's Treasury, should be brought into effect as soon as possible.
2.
It was agreed by the Conference that the Secretary of State's general
authority over the broad financial policies of the African Governments must be
retained, but that the Colonial Office should concern itself with detail only
to the extent necessary to secure the Secretary of State's interest in the
broad issues of fiscal policy, measures against inflation, exchange and currency
control, development finance and loan policy. The conclusion was reached that
the Secretary of State's interest in these broad issues can most effectively be
secured by consultation and discussion betw en the Colonial Office and the Govern-
menus concerned, which should keep the Colonial Office fully informed of the
financial situation in the Territory and should supply advance information with
regard to financial policy.
5. In accordance with these principles, it is my intention that formal control
over the finances of African Territories whose finances are not under the control
of His Majesty's Treasury should in future be exercised only through the Secretary
of State's function of advising His Majesty on the assent to the Appropriation
and Supplementary Appropriation Ordinances and other legislation of a financial
character, e.g. Loan Ordinances. Other types of formal control will be
dispensed with, except of course where payments by the Imperial Government are
The Officer Administering.
the Government of
involved,