CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 165

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INWARD TELEGRAM

This document must be paraphrased if the communication of its contents to any person outside Government Service is authorised.

Inginal

59024/2/46.

TROM HONG KONG (Commander in Chief)

TO S. OF S., COLONIES.

162

D. 22nd February, 1946. R. 24th

11.50 hrs. (via War

Office)

Restricted.

CA 2210 cipher 22nd February.

For Colonial Office.

Reference correspondence between Thorogood and Mayle (repeat Mayle) regard Finance for Rehabilitation.

Conditions

2. Supplies for Post-Military period, imposed in Treasury letter 5902/2/45 of 22nd November can be accepted in principle. We may however require authority to sell below cost in particular cases. For example rice supplies aro at present subsidised and to transfer suddenly from relief to cost basis would cause considerable problems and hardships. Reference would however be made to the Treasury in every case.

3. Although it is likely if proposals in our No.1828 Dig 060156 February are accepted that it will not be necessary spend considerable part of funds already authorised by Treasury, grateful if these funds could remain available to us in principle as it is possible in certain contingencies that we may yet be forced to call on them.

Before deficits can be estimated we require

clarification of extent, if any, to which cost of military period will ultimately fall on colony, and further evidence as to extent to which we may have to continue subsidising basic foodstuffs.

5. When possible assess position more clearly Thomson will return London to discuss final programme of procurement (repeat procurement) and Financial prospects.

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