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Your Reference. 53687/46
Treasury Reference. S/52892
Dear Miss Ruston,
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الحمد
68
TREASURY CHAMBERS,
GREAT GEORGE STREET,
LONDON, S.W.1.
17th August, 1946.
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I refer to your letter of 5th August enclosing telegram No.421 from .the Governor of Hong Kong requesting authority to begin work on the Tai Lam Chung Valley Water Schene at an estimated cost of £5,000.
The sanction given in ny letter of 26th February, 1946 to Mr. T.W. Davies for expenditure of £145,313 on Water Supplies was to cover rehabilitation of the existing plant and does not, therefore, include this new Scheme. You suggest that the cost of the Scheme might be met from a C.D. and W. grant if the Governor decides to make an application. In our view this project would be a suitable charge on the C.D. and . fund, and we should prefer it to be treated in this way, rather than as an additional charge on the loan-in-aid. There is however the technical difficulty, with which your C.D. and W. people are familiar, that we cannot agree to the expenditure, leaving open the incidence of the cost, since no retrospective expenditure on C.D. and W. Schemes is allowed. If the work is too urgent to allow time to submit the Scheme formally as a C.D. and . Scheine, it
V. is possible for the colony to incur the necessary expenditure from its own funds and afterwards rei.nburse itself provided.-
X
(1)
that the Colonial Office and Treasury are both satisfied that the Scheme is desirable and eligible for:C.D. and . assistance before any work is put in hand.
(2) that a letter is sent from the Treasury to the Colonial Office stating the maximum amount which can be reimbursed from the C.D. and W. Vote.
Miss A.M. Ruston,
Colonial Office.
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