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54126/5/49

HONG KONG.

No.

214

COLONIAL OFFICE,

THE CHURCH HOUSE,

GREAT SMITH STREET,

S.W.1.

September, 1949.

sir,

I have the honour to refer to my despatch No. 302 of the 24th of September, 1948, on the subject of the revised arrangements for financial control in Hong Kong and to inform you that my attention has been drawn to the question of the precise interpretation of paragraph 3 (b) of that despatch regarding the abandonment or remission of claims for money due to Government.

2. It was my intention that if my authority for writes-off and an abandonment of claims were no longer to be necessary, then, until a Public Accounts Committee is set up, approval of the Legislative Council should be obtained in all cases; and where substantial amounts or questions of principle are involved, prior agreement of the Standing Finance Committee should also be obtained. I suggest, however, that for writes-off, losses and abandonment of claims involving no question of principle and below certain amounts, the approval of the Financial Secretary should suffice. I should be glad if you would inform me of the amounts decided upon in e ach category of write-off. Such cases should be referred to the Finance Committee as one item without details, together with all other losses, writes-off and abandonment of claims as separate items. Providing the Finance Committee agreed to the above writes-off, etc., reference to, and approval of the Legislative Council would, except in very special cases be purely formal.

3. I would suggest, therefore, that, if you see no objection, the_procedure set out in paragraph 2 above should be followed as from the beginning of the current financial year.

I have the honour to be,

sir,

Your most obedient,

humble servant,

GOVERNOR,

(sgd.) LISTOWEL

(for the Secretary of State)

SIR ALEXANDER GRANTHAM, K.C.M.G.,

etc., etc., etc.

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