CO537-6564 — Page 81

96038/1(15)/50

Sanctuary Buildings

Great aith Street

London, S. 4.1

19th March, 1950

17

(13)

13)

CONFIDENTIAL

Dear Watson,

I have just received from your office a copy of Rayner's letter No.8301/18/50G of the 3rd March about the appointment of the Hong Kong representative of the Regional Information Office. i think that I ought to tell you forthwith that we have no funds available to us here with which we could provide financial assistance on the lines suggested by Rayner, The only provision included in the estimates for 1950/51 is in respect of anti-Commist propagenda activities in africa. As you will know from correspondence which i have sent to you recently between ourselves and the Treasury, we feel that it is not unrvasʊnable to divide the expenditure in connection with this special work on the basis that your votes cover expenditure in South-East Asia and ours oover expenditure in Africa.

As regards a contribution from the Government of Hong Kong, I would invite reference to the same correspondence wherein we have suggested that we should make it clear to the Treasury that all expenditure on this special work is a propar charge on Imperial funds and not on those of Colonial Goverusents, If this principle is not followed in Hong Kong we may well find ourselves in difficulties over the financial provision in respect of the Regional Information Office in Singapore.

J. H. WATSON, ES

ESQ. Foreign Office

Yours sincerely,

{K. W. Blackburne)

DIRECTOR OF INFORMATION SERVICES

to my kiten 565.2y+tiso q 50/50