Wt. 49614/485 3/46 50m. S. & S. Ltd.
54126/5/47
C. O.
MrPalmer
Mr...
Mr.
Mr.
Mr.
18.
*7.47
Galsworthy 1/8 j.s.
DRAFT. LETTER
D.R. SERPELL, ESQ., OBE,
TREASURY.
(19/53521/1/46)
(3).
Permt. U.S. of S.
Parly. U.S. of S.
Secretary of State.
4 AUG
For MR. Palmer's signature
Dear Serpell,
May I refer to Charles' letter S. 54642
of 7th October, concerning write-off procedure
over and "Treasury control" Hong Kong finances, and
to your letter of the 12th December, 1946
(S.50169/04).
As you Rund,
Hong Kong expects to balance its budget in
1947/48 as far as "recurrent" expenditure is
concerned and anticipates meeting "special"
expenditure from loans to be raised locally or
in London. No provision has thus been made on
the Colonial & Middle Eastern Services Vote
1947/48 for a "grant in aid" of expenses of
Nevertheless,
administration in Hong Kong.
assume the Treasury will still wish to exercise a
considerable degree of control over Hong Kong
Government finances until it is quite clear that
Hong Kong will be able to balance its budget
without any assistance from H.M.G., apart from
any assistance that may be given to meet
specific liabilities.
FURTHER ACTION.
Capio sice maat &
•Harris
C
crieti
3. It cannot be said that Hong Kong is yet
in that position and accordingly we agree that Treasury control must continue during 1947/8.
1
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
No comments yet.
Private notes are available after approval.