CO129-606-1 Treasury control over Hong Kong finances 28-9-1944 - 23-12-1947 — Page 14

14

may be as well to confirm your approach to the Governor to the latitude to be given to the colony in regard to additional non- recurrent and recurrent expenditure.

We must also of course be clear as to the relationship between the Colonial Office and the Treasury. At present,

I confess that I do not see any good grounds in the case of Hong Kong for the sort of arrangement you had in mind and to which I have referred above.

I am sure you will agree that it is most desirable to get this matter cleared up as soon as possible and in any case well before the beginning of Hong Kong's next financial year. Perhaps the next step will be to agree the form of your communication to the Governor?

Yours sincerely,

Du Sun