CO129-590-28 Hong Kong finances- advances to meet deficits 20-12-1941 - 3-1-1944 — Page 47

A/1597.

4, MILLBANK,

Dear Foster Hall,

WESTMINSTER,

#

2

LONDON, S, W. 1.

(ABBEY 7730)

20th July, 1943.

47

I understand from our conversation by telephone that the Foreign Office have presented you with an unexpected bill for about £250,000 on account of S3 expenditure in China on behalf of

Hong Kong Officials, etc., and that you are wonuering where the money is coming from to meet it.

The only money available under present conditions, so far as we are concerned, is the income of the Hong Kong Exchange Fund (since 26th December, 1941). At present we have a surplus of about £189,000 on this account; but this seems likely to run off before so very long, as we reckon that our annual commitments under existing authorities for Hong Kong account are well over £500,000, whereas the annual income of the Exchange Fund is only about £400,000.

Youn mi

B.E. Foster Hall Esq.

HH Downie