CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 147

144

!

10.

A

In view of the assistance which will be required

frofed.K.

from U.K. funds to meet the budget deficits and the

possibility that some form of Treasury guarantee may be

required for any loans raised; and that the sums advanced

from U.K. funds to meet Hong Kong expenditure during the

war amounting to £250,000 (1943/4), £600,000 (1944/5),

and £1,650,000 (1945/6) may have to be treated as a loan;

Treasury will require to maintain some degree of control

over Hong Kong finances. The exact form has not yet been

decided upon but this could suitably form the subject of

discussion with the Treasury after Follows' arrival.

In this connection I would refer to the correspondence

mentioned in the C.-in-C's telegram CA.2210 of 22nd February

and subsequent correspondence between the Colonial Office

and the Treasury, copies of which are enclosed: - Treasury

letter 2nd March, Colonial Office letter 5th March, and

Treasury letter 7th March. I should be grateful-for your

comments on the various points raised in Treasury letter

of 7th March, 1946.

6 54126/T/45

8, 9 and 11 54126/1/45.

*

SECER.