54236/1/47
Dear Serpell,
Colonial office, Downing Street
3.W.1.
14th July, 1947.
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Staff of Development Secretariat,«.00 08
Hong Kong.
In your letter to me No.I.F.16/020 of the 16th June, about the appointment of a Registrar of Co-operatives in Hong Kong, you asked me to consider whether the post ought to be charged to C.D. & W. Funds, and referred me to the correspondence between the Colonial Office and the Treasury on the subject of the principles which should determine whether new expenditure in a Treasury-controlled Colony should be charged against revenue or to the Colony's C.D. & M. 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 staff matters are concerned, the present proposals are, broadly speaking, that local revenue or grant-in-aid should bear increases in establishment necessary to enable Governments to carry out efficiently responsibilities not arising from the development programme; that the cost of new posts arising from the development programme should be charged to G.D. & W. funds; and that posts under O.D. & W. schemes will normally be on contract terms, save where recruitment on this basis would be impossible or cause hardship, or the retantion of the post on a permanent basis after1956 can be justified.
D.R. SERPEDL, ESQ,, 0.B.E.
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