જ્
༢,
to a certain amount of delay in reaching decisions. The
control was, however, necessitated by the financial assistance
given by H.M.G. which is referred to in the financial
settlement and to the uncertainty whether the Colony was
ikely to need any further assistance. The "entre 1"
was in the main confined to questions of principle or to
-matters-involving heavy expenditure.
Subsequent to the financial
settlement referred to above there has been a change from "control"
+
to "consultation" which I am glad to see from your official despatch
was
of the 13th October you accepted as generous. In these circumstances
no doubt
any discursio
Gurpose
you will perhaps agree that there would be little bu
in discussing any
difficulties and delays which may have occurred in the past.comis tracadunie.
The speed with which the recent increases in the cost of living
allowances were approved are, I think, proof of our desire that
consultation should not involve any unnecessary delay. The
increases in the cost of living allowance were, of course, more than
a mere periodical review and constituted an important change in the
staff emoluments and reference Home was necessary, apart from any
question of "consultation", because of the possible repercussions on
employees of Service and other Departments of H.M.G. in Hong Kong; that was clearly quite moundable in the circumstances,
4.
On the matter of local loans we agree that the potentialities
of local investments can best be judged by those on the spot, but
there are questions of exchange control and other aspects of the
matter which inevitably present difficulties outside Hong Kong and
therefore necessitate consideration at this end. We have been considering
the question of further local borrowing referred to in para.9 of your telegram
2
No.173 and hope to let you have a reply in the near future.
The suggestion that Hong Kong should borrow from the Currency
Fund was not agreed to when it was considered in 1947
(see paragraph 4 of the Secretary of State's telegram No.1492
of the 17th September, 1947). We are however looking into the
To such borraang
question again to sea whether the objection#/still holds good
Sat
and will let you know the outcome as soon as possible.
Copy for Action (on 54126/4/49 - (Loans file)
(No.65 (54126/4/47