15
(5)
reason being that (as is always the case when public monies are involved) before any arrangement involving the disbursement of monies from Hong Kong Government funds can be implemented, the payment must be sanctioned by the Legislature of the Colony. The Governor accordingly referred to the Finance Committee of the Legislative Council the proposal that I described in (iii) of the second paragraph of my letter of 12th May in order to initiate the appropriate legislative action. I regret to say, however, that the Committee has not agreed to approve the expenditure of public monies that is involved. You will appreciate that in the absence of the necessary legislative authority, any payment of public monies to your Company would be unlawful, and, accordingly, no final arrangement on the lines we discussed in our exchange of letters could be made.
In these changed circumstances we were proposing to ascertain from the Governor on what conditions the Government of Hong Kong is prepared to allow your Company to be relieved of their obligations. However, as you asked me on the telephone last Wednesday to let you know, as soon as possible, whether there had been any developments, I am writing to you straight away without waiting to communicate with Hong Kong.
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