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HONG KONG "TREASURY

CONTROL

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(a) Estimates.

Hong Kong will be asked to submit by telegram to

the Secretary of State the main outlines of the estimates before these are submitted to the Legislative Council, and the Colonial office will agree with the Treasury

the terms of the reply.

On receipt of the detailed estimates, the Colonial

Office will forward copies to Treasury for information and will secure Treasury's prior agreement to terms of Secretary of States reply to the Governor's despatch

enclosing the Estimates.

(b)

The Governor will be asked to keep the Secretary

of State informed monthly of the general trend of the

financial position during the year and the Colonial

Office will transmit this information to the Treasury

and agree upon the terms of any proposed communication

to the Governor regarding these monthly reports.

(c)

The Governor will secure the Secretary of States approval for any additional expenditure not provided for in Estimates involving any item of Capital expenditure exceeding $1,000,000 or of recurrent expenditure exceeding $250,000 p.a. These cases will be notified to Treasury

for information.

The Treasury will be able from (b)

above to see the effect of the expenditure under this

paragraph and will thus be able to comment if they think

it necessɑry to do BO.

(d) The terms of issue of any Government loan will be

agreed with Treasury.

(e) The annual accounts of the Colony will be

forwarded

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