CO129-576-6 Hong Kong University- King Edward VII scholarships 23-2-1939 - 15-1-1940 — Page 16

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of the various savings and excesses in respect of the

current financial year which càn at present be foreseen.

It is not practicable to give an absolute assurance as to

effecting the savings indicated, but every effort will be

made to secure the savings and also to reduce to a minimum

the additional provision for which it may be necessary to

seek approval.

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4. It will be noted that the enclosed statement does

not deal with Subheads D.1. D.2., and D.8., of the Vote or

with certain other new services relating to expenditure in

Palestine. Mr. MacDonald has been in communication

regarding these items with the High Commissioner for

Palestine and also with the Army Council and the Secretary

of State for Air, who are directly concerned with the

expenditure falling under Subhead D.1. (Defence), and a

separate letter is being addressed to you regarding these

services.

5.

Mr. MacDonald fears that it is not possible to

indicate at this stage what economies can be effected in

the provision required in future financial years on the

Colonial and Middle Eastern Services Vote. The total

amount of the provision to be included will depend very

largely on the assistance which it may be necessary to

give to Colonial Governments to defray the cost of

administration. Certain general questions of policy are

at present under discussion, but it will be appreciated

that in any event it will hardly be possible at this carly

stage for Colonial Governments to foresee the financial

andeconomic effects of the war, and they will therefore

find it a matter of great difficulty at present to reach

any