In Siding In Bangittar
My dear Crombie,
11
10th May, 1948.
Mr Palmer
Ana'd (13)
73
I can whole-heartedly thank you for the promptitude of your reply to my letter of the 3rd lay about Treasury control over Hong Kong, although its content is disappointing. I doubt if we can usefully pursue this
particular point in time for us to be able to take any announcement to the Governor before his Legislative Council meets on the 12th beyond that which we have already suggested, although we may possibly want to come back at you on this subject.
I should, however, like to corazont immediately on the suggestion that Treasury control ought to be continued because of doubts of the wisdor, of Hong Kong's general financial policy. Quite fesukly, that seems to be an cntire: novel and unacceptable principle un upplied to Colonies generally. I can think of quite a number of Colonics, some of them hovering on the edge of insolvency, others by good fortune quite solvent at the moment, about whose financial policy I should be much more critical than about that hitherto pursued by Hong Kong. I should not, however, in th least agree that we should institute Treasury control over al those territories. I have always thought that the basic principle, and the only sound principle, with regard to Treasury control is that if the Treasury 10 actually assisti în moeting the general expenses of a territory, or there is good reason to believe that such assistance is likely to be needed in the near future, then the Treasury is entitled to . messure of control. It is precisely because our policy with regard to Hong Kong is based on the assumption that the Colm will not be receiving general assistance in the future that seemed to me illogical to raint-in control.
Yours sincerely,
J.I.C. CROBIE, ES., C.M.G.
(. Caine)