MR. HALL.
5
3481/17.
I see no objection to the proposal to create a will receive Revenue Equalisation Fund which, I assume, the approval of the Legislative Council in due course. I also see no objection to the balance of the Water Renewals and Improvements Fund mentioned in paragraph 5 of No. 6, being transferred to the proposed Fund, and to the credit balances referred to in paragraph 8 of No.6 ✓ being merged, either with it or with the existing
Development Fund.
2. As regards the proposal in paragraph 4 of No. 6, regarding the initial contribution to the proposed Fund, if it is intended to make a direct transfer from the General Revenue Balance, it would, I think, be contrary to paragraph 13 of the Secretary of State's Circular A Despatch of the 25th of November 1937.
✓
3.
In Fiji, where such a proposal was made, in connection with the initial contribution from surplus balances to the Fiji Development Fund, approval was given in paragraph 5 of the Secretary of State's Despatch No. 67 13 of the 19th of August 1949, to Fiji (on C.0. file 85104/49) for entries to be made on both sides of the Estimates, thus, and "Withdrawal from General Revenue Balance" under Revenue,
under "Transfer of Surplus Balances to Development Fund" Expenditure. It may, perhaps, be convenient to adopt a similar procedure in the present instance.
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With reference to paragraph 5 of No. 6, the proposal to pursue no further the establishment of a Railway Renewals Fund will, I take it, be without prejudice to the considera- tion of proposals for recasting the accounting arrangements of the Railway, mentioned in the Secretary of State's Savingram No 371 of the 26th of April 1951, to Hong Kong C/ (on C.0.file 53627/51).
5.
May I please have two copies of the reply sent?
copfes
Milliy
D. G. C. A.
25.1.1952.
Hykr.
"Fe attech references at "A" "B", "C" atre & suire
Done
14K 29/1
Mall
25/1
I a Hach
dft.
banred
M
preceding
mins.
I wo be glad it further amom. cd be given
bo x
h of Mr Mordecai's mind as I am not sure how
theau
No
valid this point is.
is
financed from the
Fund
The bulk purchase of supplies.
Essential Commodities Equalization
vide (4)/54466/1/51. On the other hand,
I suspect that this funding of so much of the
General Revenue Balance
may
be a
preliminary