CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 30

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has recently arrived from Malaya says that the Malayan

bill is not likely to be lower than £50,000,000, but

that it might well be above that, and might even

amount to £100,000,000. For this particular item

therefore we are not yet in a position even to guess

at the figure within £50,000,000. And this is by no

means the only unpredictable burden which Malaya will

have to face. It will be some considerable time before

we are even in a position to guess at the size of the

bills for the demobilization of the local forces and

for assistance to the released internees. Both of

these bills will be very heavy. Then again, the

Malayan Governments are still engaged in negotiations

about the payments of arrears of pay to their local

Civil Servants during the period of the Japanese

occupation.

All that we can say about this, at present,

is that this will be another heavy bill for the

Malayan Governments to foot.

For these reasons I still think that it would be

premature to embark on discussions with the Treasury on

the subjects of free grants to the Malayan Union and

Singapore. I doubt even if the financial revenues which

we shall get from them when they send their draft

estimates for next year will provide us with a firm

enough basis on which to go to the Treasury.

#

On the other hand, I see no reason why the fact

that we are not yet in a position to build up anything

like a concrete case for Malaya, should stand in the

way of an approach to the Treasury in respect of any

other of the Far Eastern territories when we are in

a position to do so.

In his despatches at Nos. 38 and 51 on this file,

the Governor of Hong Kong has demonstrated clearly that

Hong Kong will need free grants from the Treasury,

though it is admitted that it is hardly yet possible

which

even to guess at the total amounts which will be

required.

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