CO129-530-3 Supplementary Expenditure- reports of the Finance Committee and quarterly returns 13-2-1930 - 7-6-1932 — Page 5

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this to be come a practice. Hong Kong never

observed their old limit of $1200 (which

certainly was impracticable), but we must not

let them begin to disregard the new limit in

practice on grounds of urgency. It is

always possible to consult the Secretary of State

by telegram and if the expenditure absolutely

must be incurred at a few hours notice, they

can at least inform the Secretary of State

by telegraph. I think we should, therefore,

instruct the Governor to proceed accordingly

in future.

(2). No. 12 submits a Report of the

Finance Committee in accordance with the usual

previous practice. I think the intention

of the present system is rather that the

Secretary of State should formally be asked

to approve the expenditure only on the

quarterly returns (except where his prior

sanction is needed). We might, therefore,

inform Hong Kong that the practice of sub-

mitting these Reportsseparately may be

suspended.

(3). It appears that some of the

expenditure submitted in the Quarterly

Returns, has not yet been approved by the

Legislative Council. I understand that

it is intended that the Secretary of State

should not normally approve expenditure until

it has been approved by the Legislature.

If