CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 37

36

:

from the Treasury, and the size of the grant which

would be required, it would be fruitless to expect

the Treasury to agree in principle to such a grant

as proposed in the Governor's despatch at No. 38;

and that therefore this general questi on must await

precise information as to these burdens (including

the amount of the war damage bill); and that in the

meantime it is proposed to proceed (as in the third

....

paragraph of your minute or the 12th December).

(I am deferring taking up the question of communicatin

with the Malayan Union and Singapore Governments, as

suggested by Sir T. Lloyd at X above, until the

question of what is to be done about Hong Kong has been cleared up with the Treasury.)

for comm rts/on

?Mr. Palmer should now prepare drafts/ on the lines

indicated in this minute.

Orig. a 54126/47 55 Hong Kong

Librey to note 50

Loted in

4h.

til 450

11.3.47.

4-3-47

Action on the lines proposed involves acceptance of the position that these territories have no special claim to financial assistance from

U.K. on account of their damages and losses due to military operations and enemy occupation, that, like other Colonies, they will be eligible for financial assistance from U.K. funds if they find themselves unable to pay their way.

In my minute of the 12th December,

I suggested that we should reply semi-officially to the Governor's suggestion for a grant for Hong Kong on the lines of that given to Malta, so as to avoid having to seek Treasury concurrence and thus committing ourselves at this stage to acceptance of the above position. I presume, however, from the direction in Sir Thomas Lloyd's minute of the 30th December, that Treasury concurrence should be obtained in the draft reply that it is considered that there would be no advantage in proceeding as I proposed.

In the circumstances I have no comments to offer on the action proposed by Mr. Paskin, except that I would suggest that we should avoid referring to the Treasury so far as possible in the draft despatch to the Governor.

See draft

draft on

on 54126/6/47.

£4.3.47.