54145/4/47
Tel. No.: Whitehall 1234
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TREASURY CHAMBERS,
GREAT GEORGE STREET,
LONDON, S.W.1.
3rd March, 1947.
Dear Mayle,
We discussed this morning the proposals contain- ed in your letter of 27th February for the revision of the Hong Kong constitution, and I promised to let you have our observations in writing.
I am bound to say at the outset that, we feel it is a little unhappy that we were not brought into consultation at an earlier stage. Not only has the time allowed us for consideration of the proposals been uncomfortably short, but given the present financial status of Hong Kong it seems not unreason- able to expect that you would carry us with you in dealing with such important matters. I notice, too, that the telegram (No.329) sent to Hong Kong on 21st February before we had been approached, deals not only with the general proposals but also with such points of special interest to the Treasury as the appointment of Auditors.
For the moment our main concern is that the statement to be made by your Secretary of State on the 5th March should not leave room for any doubt about the financial status of Hong Kong as a Treasury controlled Colony. We should like it to be made clear, if not in the main body of the statement at least in reply to any supplementary questions, that for the time being financial control must continue to be exercised by H. M.G. We should see no objection to saying that the aim will be to give the Municipal Council full control over its finances provided that it is indicated that the degree of financial autonomy given to the Council must depend on the financial
N.L. Mayle, Esq.,
Colonial Office,
Downing Street, S.W.1.
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