Colonial office,
Downing Street,
S. .1.
18
5
2
។
1947.
04126,5/47
Dear Serpeil,
Ansed (6)
May I refer to Charles' letter 9.54642 or 7th October, concerning writ- of procedure and "Tressury control" over Hong Kong finances
and to your letter of the 12th December, 1946 (0.50169/04/.
As you know, Hong Kong expects to balance its budet in 1947/48 as far as "recurrant" expenditure is concere and anticipates meeting "s @cial" expenditure from loans to be raised locally or in London. No provision has thus been made on the Colonial and Midule astern Services Vote 1947/48 for a "grant in uia" of expenses of administration in Hong Kong.
Nevertheless, I 8sume the Trea:ury will still wish to exercis- a considerable degree of control over Hong Kong Government inances until it is uite clear that Hung Bung il be able to balance it budget without any assistance from His Majesty': Government, spart from uny assistance that may be given to meet specific liabilities.
it
•
3. It cannot be said that Hong Kong is yet in that position and accordingly we agree that Treasury con- trol must continue during 1947, 8. The question then arises whether that form of control should take the form of Miscellaneous 460B or whether it should be on similar lines to that which was followed in the case of Singapore in 1946, 7. As Hong Kong appears to be rapidly approaching the position of a balanced
/budget after
D.x. Sakrill, No
B.:
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