HK.
Copy for 54326/+7.
Oft.on 16/1/47
14 33
14th July, 1947.
Dear Sorpell,
Veloyment dooreteriat,
In your letter to me No.I.P.16/020 of the 16th June, about the appoint, ent of a Registrar of Co-operativos in Hong Kong, you asked me to consider whether the post ought to be charged to 0.9. & .. Bunds, and referred me to the corrompondence between the Colonial Office and the Treasury on the subject of the principles which should determine whether now expenditure in e Tronary controlled Colony should be charged against revenue or to the Colony's G.D. & 3. allocation.
I had not seen that correspondence before, but I have now had an opportunity of looking at it. I observe that, so far as otoff mettors are concerned, the prosent proposale are, broedly spocking, that local revenue or grant-in-old should bear increases in establish ent necessary to crable Coverments to carry out efficiently reemansibilities not arising from the devolopment programme; that the cost of new poets arising from the development programme abould be charged to U.D. & funds; and that poste under G.D. & V. scheen will normally be an contract tere, save where recruitment on this boeis would be impossible öz cause hardship, or the retention of the post ou a permanent basis after1956 can be justified.
D.R. SERPEIL, E50,, 0.B.E.
I further