CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 27

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received and will doubtless have to continue to

receive, assistance which in fact is at present in

the form of a grant, with the possibility of some

repayment being asked for at some future date.

Thus

I suggest our policy should be to press the Treasury

for free grants in each case that arises where

Hong Kong requires assistance from U.K. funds, rather

than that we should approach the Treasury on the

lines suggested by the Governor, for an immediate

grant similar to that given to Malta. We shall

probably in the end secure as much by this method as

by the method of asking for a gesture.

#

Whamer

2

12. 46.

53. Sar. No. 349 from Hong Kong - 18/11/45

55358

46

Mr. J.B. Williams

Mr. Lloyd

•

As regards the estimates, we shall want to know whether the Treasury agree to the proposals in Mr. Palmer's letter to Mr. Serpell (No.46), and Mr. Palmer will no doubt remind Mr. Serpell if he does not get a reply soon.

2.I send this forward for the other question discussed in Mr. Palmer's minute, namely, whether we should try to get for Hong Kong a free grant from

The Governor H.M. G., using Malta as a precedent. put the case in his despatch of 24th July (No.38) and has underlined it in his later despatch (No.51) When this question of asking the Treasury for free grants for the Far Eastern territories which were occupied by the Japanese was discussed in the Colonial Office last July, quite independently of the representations made by the Governor of Hong Kong which had not then been received, the conclusion was reached that there was no good case for asking for such contributions, but that we might ask the Treasury to assist in other ways, as the occasion arises, e.g. by converting loans-in-aid into grants and by contributions towards meeting the cost of grant and compensation for war damage.

3. I think, therefore, that the policy now suggested by Mr. Palmer is in line with the above decision. If we are going to adhere to that decision, we can explain to the Governor of Hong Kong that we think that the policy proposed is the best one and

this