CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 105

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local administration adequate guidance on financial

policy and particularly on such matters as taxation and borrowing. I see that Winnifrith in his letter

of 31st May suggested a number of amendments to a

long draft telegram which was intended to give

guidance on these matters, but I am told that owing to a series of mishaps this telegram was never sent

off. Meanwhile Hong Kong are introducing en

Appropriation Eill and, having been left in complete ignorance of Whitehall's views, are expecting the Treasury to provide over £7 million. I hope that steps will now have been taken to make it clear that we cannot accept these commitments, but the present

situation must be as unsatisfactory for the Hong

Kong Government as it is for the Treasury and I hope

that energetic steps will now be taken to give the local Government proper guidance and to reach

agreement as to the amount of United Kingdom

assistance