(11)
RECEIVED 19 MAY 1942
I.F.23670. REGY
My dear Caine,
Treasury Chambers,
H.R
Great George Street,
13
→.W... 70
14th May, 1948.
Thank you for your letter of the 10th May about Treasury control over Hong Kong. We shall, no doubt be considering the question of Treasury control, both in Hong Kong and generally, in the near future. I will not, therefore, discuss here the views expressed in your letter, beyond saying that I should not wish to give the impression that silence on my part meant that we could accept them as they stand!
There is, however, one point to which I may perhaps refer. It seems to me a mistake to argue that because some colonies "hovering on the edge of insolvency" are not subject to Treasury control, another, which is so subject, should be released without our taking such steps as are open to us to ensure that its financial policy is being conducted on the right lines. As I understand it, under the arrangements which you are now proposing for African colonies you expect to be able to influence the financial policies of those colonies, less formally it is true, but more effectively than hitherto. In the case of Hong Kong, for which no new arrangement has yet been proposed, we are suggesting that before Treasury control is lifted, we should together do our best to see that the Colony starts off on the right foot.
Yours sincerely,
Sir Sydney Caine, KCMG.
9.10. Combis
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