100, 20
36
Colonial Office,
Downing Street,
8.W.1.
3 December, 1946.
54236/46.
Dear Mr. Serpell,
At a meeting on the 18th July last in this Office, which Mr. James attended, questions affecting the new Development Secretariat in Hong Kong were discussed. The Head of the Secretariat Dr. Herklots was present.
Dr. Herklots made the point that certain important short term self-liquidating projects were being held up for lack of the necessary finds to initiate them. These schemes were almost entirely concerned with food production. It was agred that they were not suitable for Colonial Development and welfare assistance in as much as, once started, they should not only pay for themselves but probably show a profit and that there- fore the Treasury should be asked to approve of a sum of £25,000 being made available to Dr. Herklots as required.
Before the letter putting this propocal to the Treasury was despatched a telegram sumarizing the estimates was received from the Governor of Hong Kong from which it appeared that more provision was being made for the Development Secretariat than had been believed. We therefore referred the proposal discussed with Dr. Herklots here back to the Governor and now have from him a savingram (of which a copy is enclosed) asking for sanction for the expenditure, if necessary, of up to £15,000 in addition to the amounts already set out under Head 34 in the Estimates for some of these short term projects.
D.R. SERPELL, ESQ., 0.B.E.
/We