CO129-590-21 Government funds- temporary provisions 23-12-1941 - 4-12-1942 — Page 22

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I have discussed this with Mr. Roberts- Wray, in the hope that we might be able to avoid a

qCneral) Further discussion, but I doubt whether we can.

I agree that we need not do anything about either 1, or 2(c) or 2(d) of Mr. Roberts-Wray's minute.

This leaves items 2(a) and 2(b) of that minute. As regards these, the difficulty would be easy of solution if we could accept the position that Clause 3 and the First Schedule could be omitted, and that the Crown Agents and the Secretary of State could exercise all the control required under Clause 2. But Mr. Roberts-Wray points out that, if we omit Clause and the First Schedule we get ourselves into other difficulties,

since by means of Clause and the First Schedule we transfer from the Governor to the Secretary of state various powers other than financial powers (under the Ordinances mentioned in the First Schedule) which, if that Schedule were omitted, would in present circumstances have no-one to exercise them.

It looks, therefore, as though we must leave Clause 3 and the First Schedule in the Order, and if that is done there are difficulties in respect of both the Public Works Loan Ordinance, 1933, and the Hong Kong Dollar Loan Ordinance, 1934. As the draft Order now stands, with the Secretary of State substituted for the Governor in respect of those two Ordinances, there is a mandatory provision in the Public Works Loan Ordinance (Section 10) that a Sinking Fund shall be provided, and similarly there is a mandatory provision in the Dollar Loan Ordinance that there should be an annual redemption of bonds.

The difficulty might be got over by providing for the modification of these two Ordinances

by their inclusion time the second schedule craft order. bebine the modifications say ordinances shall have no effect.

and

effect that certain of the provisions of these two

But if this is to be done, the two Ordinances will need to be examined with some care by not only oursleves but the Crown Agents to see what modifications are required. As regards the provision for a Sinking Fund, I am not sure that we want at present to tie ourselves to keeping up the Sinking Funds in respect either of the Hong Kong or Malayan Loans. Anyhow, nothing has been agreed upon with the Treasury.

I think that we must have a further

discussion at which Mr. Caine, and Mr. Goldburg of the Crown Agents, as well as Mr. Roberts-Wray, should be present.

Kus Blayder

9.7.42.

Mr. Gent, Mr. Blaxter, Mr. Monson and I discussed the draft Order this morning. Since it is not desired that any of the Governor's powers under the Public Works Loan Redemption Ordinance, 1933, or the Hong Kong Dollar Loan Ordinance, 1934, should be transferred to the Secretary of State it was decided to delete the references to those Ordinances in the First Schedule. There is, however, one point to which I should like to invite attention.

Under