CO129-606-1 Treasury control over Hong Kong finances 28-9-1944 - 23-12-1947 — Page 17

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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At the same time I would emphasise our doubts about the efficiency of Hong Kong's present financial machinery, which we hope will be strengthened.

SAs regards the limits of write-off we accept the proposals made in paragraph 5 of your letter.

I should refer here perhaps to one other point. At present items of special expenditure are shown in a schedule and not as part of the Estimates. I do not think that this is a wise procedure and I suggest that you should instruct the Governor of Hong Kong to include special expenditure, whether it is met from the loan or not, in the Estimates. I should make it clear that our

agreement to your proposals is dependent on a satisfactory assurance on this point. Special expenditure should of course be met from revenue as far as possible. Iestivalio file

Yours sincerely,

Du supere

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