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

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

(Note:

We shall

Love

15

the

mistaken imporession

page @ of No. 28)

Correct 12

at X on

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in

forty deper

the

loan in

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prevent ituation,

mirst. But the for. promines

a further explanation by despatch

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the despatch but

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و المطبعة

حسد

197

Mr Caine Mr. LLoyd

The Governor's telegram at No. (28) was discussed at a meeting at which were present Mr. James, Miss Ruston, Mr. Emanuel, Miss Beaton and myself, and the attached draft is based on the results of our discussion. It will be seen that a telegram in reply lo N28 is requested before the 21st of July which gives very

little time for considering comments on details, and

are also handicapped by the fact that the despatch on the financial position generally and on the reasons for not floating a loan until next year, has not yet been received in the Office. Moreover,

Mr. MacDougall is not available for discussion on the matter; and we have not sent the Governor previously any general guidance on the question of raising loans or increasing revenue as we had hoped that we could discuss this matter with Mr. Follows. Further, Mr. Follows has not been able to come and in consequence, no telegram of general guidance has yet been sent to the Governor. It is perhaps necessary to explain this in replying to No. (28).

The main object of the present telegram is to hold the position until we have had discussions with Mr MacDougall, since it was felt by Mr. James particularly that it would be out of accord with Treasury practice to agree to advance money in anticipation of a loan to be raised by grant-aided territory:

while, on the other hand, it seemed to the Colonial Office side that, though we favour in

principle

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