24
it
have to be, of course, an arrangement to keep the Treasury informed of Hong Kong's financial position until such time as it is firmly re-established. would, however, relieve both the Colonial Office and the Treasury of the correspondence and time and labour involved by the detailed Treasury control of Hong Kong finances, and it would, we suggest, encourage the Colony itself to take the necessary steps to make its financial position secure. of this proposition, we are not pursuing at the moment the question of the exact form of detailed Treasury control referred to in Serpell's letter of the 23rd December (IF 16/10/02).
5.
In view
In view of the comprehensive way in which the subject is dealt with in Grantham's despatch, it is perhaps unnecessary for me to repeat the general arguments in favour of a grant of financial assistance by H.M.. towards the territories in the Far East which were occupied by the Japanese, at a
time when R.M.0. was in no position to carry out their defence responsibilities towards them. These general arguments seem to have been accepted in the case of Burma and the consideration now being given to the proposal to make a grant and an interest- free loạn to assist Malaya in meeting the cost of the war damage compensation scheme implies at least that they are not rejected in relation to the Far Eastern territories. I should, however, like to stress in the case of Hong Kong, the particular considerations referred to in paragraphs 27 and 35 of the Governor's despatch. There is apparently a considerable volume of local feeling on the subject of the Colony's claim to assistance front the U.K., and the Governor says that there can be little doubt that the manner in which a settlement is reached now over this question will influence the unofficial
attitude