CO537-3703 — Page 49

The

I appreciate that this system of financial control

may cause disappointment locally in view of the opinions

expressed in paragraphs 34 and 42 of Sir Mark Young's

published despatch No.145 of 22nd October, 1946, but it

appears to me essential in present circumstances.

question whether any modification can be made in it can be considered when experience has been obtained of the new

arrangements and when the finances of the Colony are no

longer subject to control by His Majesty's Government.

I have already indicated in my despatch of

3rd July 1947 that loan projects of the Municipal Council

would require to be sanctioned by the céntral Goverment and

to be submitted to me as well, and also that audit of the

Council's accounts should be carried out by the Colonial

Audit Department.

(11)

✓ (a)

External control over the affairs of the Municipal Coung11.

By-Laws You will have observed from the enactments

referred to in paragraph 3 above that both in the

United Kingdom and in Colonies, by-laws made by

local authorities requiro confirmation by the

central Government and that in some cases the

1

central Government has specific powers to amend as

well as to disallow. In the case of the Hong Kong

Municipal Council it would perhaps be sufficient

to require confirmation only without giving

specific power to amend. The requirement of

confirmation of by-laws by the central Government

is a logical consequence of the requirement that

the Council should act in conformity with the

general policy of the central Goverment (vide paragraph 3() of my lospatch of 3rd July 1947).

I assume that occasion for declining to confirm

will not frequently arise.

/(b)