CO129-606-1 Treasury control over Hong Kong finances 28-9-1944 - 23-12-1947 — Page 22

to that which was followed in the case of Singapore

As

in 1946/7. In view of the feet that Hong Kong appears

to be rapidly approaching the position of a balanced.

budget after only a short period following the

liberation, we should be reluctant to have to impose

on her the full Miscellaneous 460 B control, and we

hope you will be able to agree to the somewhat faser

control on the Singapore lines. Thmic financial position

simpler form of

ina omewhat similar In 1947/48 Hong Kong estimated

revenue and "re current" expenditure is (H.K.) 95 millions

which equals about £6 millions and in addition special

expenditure to be met from loans is estimated at

$50 millions (£3 millions). Singapore estimated revenue

in 1947 is $56 millions = £62 millions and the total

expenditure $65 millions = £72 millions and the deficit

of £1 million will be met from a loan raised locally.

The financial position of the two Colonies is thus somewhat

similar.

for 1947/8

at/th

4. I should be glad therefore if you would agree that the

tales he following form: ~

Treasury control should be coxfeble

(a) Prior Treasury approval of the Estimates.

(b) Prior Treasury approval of

(1) any additional non-recurrent expenditure amounting

to $500,000 (£31,250) or more,

(ii) Additional recurrent expenditure amounting to

$250,000 (£15,625) p.a. or more.

(c) Treasury agreement as to the terms of issue of any

loans.

In addition we should seek prior approval for any expenditure

involving an important point or principle such as any general revision of salary scales, etc.) We would also keep you informed

of the general trend of the Colony's financial position.

5.

As regards the limits of "writes-off" for which we need

to seek your approval, I am sure that you do not wish to be

troubled with unnecessary references to you on the many cases of

/losses