2
97
11 Since then we have carefully reconsidered the terms of the announce- ment and as the result of such further consideration we are led to believe that having regard to the existing and, as we hope, temporary financial position of U. K., and the heavy responsibilities of H. M. G. in relation to the whole of the Colonial Empire, no material modification of the proposals in favour of Hongkong can be expected. In these circumstances we feel that to voice in the Legislative Council our dissatisfaction with and our opposition to H. M. G. 's proposals cannot produce any financial benefit to the Colony, whilst such a step might possibly prejudice pending financial settlements between H. M. G. and other parts of the Colonial Empire and, moreover, might afford critics of the British Empire an opportunity to make capital out of our attack.
12.
It is therefore our intention to introduce certain resolutions before the Legislative Council, of which formal notice will of course be given in due course. The resolutions, which will be proposed by myself, and seconded by Hon. T. N. Chau, will be in the following terms:
(1) That having regard to the financial difficulties with which the U.K. is itself faced as a result of losses incurred during the war, and having regard to the heavy burden which the U. K. taxpayer is called upon to bear, this Council, on behalf of the Colony, accepts the proposals contained in H. M. G. 's announcement of the 27th April, 1948, which this Council regards as representing a great effort and a very real proof of sympathy and goodwill of H. M. G. towards the Colony.
(2) That this Council respectfully requests H.E. the President to acquaint the Secretary of State with the above resolution and at the same time to make the necessary representations to him with a view to:-
(a) The immediate termination of Treasury control over the
Colony: and
(b) Ensuring the speedy examination and decision on the part
of the Services concemed in respect of the "denial" claims.
13. We venture to hope that the step which we propose to take, as indicated above, will enable the Colony to make a gesture acceptable to H. M. G. of its loyal concern for, and deep sympathy with the temporary financial position of U. K. and that such gesture will be accepted by H.M. G. in the spirit in which it is offered.
We have the honour to be,
Sir,
Your obedient servants,
sgd.
David F. Landale
The Hon. Colonial Secretary,
HONG KONG.