CO129-590-28 Hong Kong finances- advances to meet deficits 20-12-1941 - 3-1-1944 — Page 41

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subsequently made, however, it appears that, although

Burma does, in fact, receive advances from the Vote of Credit,

a form of control similar to our Misc. 460A control is

applied to the expenditure from the advances. I suppose,

therefore, that if Hong Kong is to receive advances we must

be prepared to accept a measure of control but, no doubt, in

view of the very exceptional circumstances and the difficulties

I have explained above, the Treasury would be prepared to leave

the control as loose as possible. Provided this can be

arranged we do not mind very much whether the funds required

are found from the Colonial and Middle Eastern Services

Vote, as in the case of Somaliland, or from the Vote of

Credit, as in the case of Burma.

,

We shall, no doubt, have to talk about the details of the

inpool form of the control which you would wish to exercise but

I set out below, purely as a basis for discussion, winet she

we have in mind.

annagements

alich might

might be made.

In the first place I should stress that on the broad

principles involved by the present expenditure, we have

carried the Treasury with us at each stage. The rates of

maintenance allowances we are paying are, for example, strictly

in accordance with normal scales. Pension awards and gratuities

are calculated under Hong Kong legislation. For these reasons

there is probably very little of what has already been arranged

that you would wish to criticise.

For the future, it would seem that we should endeavour

to prepare an annual estimate of the probable receipts and

expenditure during the year and to submit this to you for

approval before the 1st April of each year. This would

necessarily have to be on a somewhat provisional basis but

it would be prepared on the best information available.

The estimate would probably be arranged under the

following