CO129-606-2 Treasury control over Hong Kong finances 22-1-1948 - 9-12-1948 — Page 21

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$16.0m 53652/48.

I.F. 16/1/03

Colonial office,

The Church Roune,

Dear Russell Edmunds,

Great (mith stre~

.1.

9th Doce ber, 128.

5:126/57/45

Wail-

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Thank you for your letter of the 23rd November caï enting on the first periodical repo:t received Cras Hong Kong regarding its fimncial position, I enclose a copy of our reply. AB you say, the position seems reasonably satisfactory and if fature reports continue to inlicate a satisfactory position we may not need to send replies to them. AB however this is the first of the quanterly stato inte for which we asked in con ection with the relaxɛtien of con.rol, a fairly ful. reply has been sent.

2. As reperds your second paragraph a note has boen mee on the relevant file that you would like to be kept informed of the progress of these negotiations,

3. As regards your third paragraph we do not think we could, in advance of the Covernor's communiction regarding any proposed increase in the cost of living allowances, inform him that any such proporals would be strongly que: tione. Obviously we must examine any proposals on their own merits.

In these circumstances, I hope that you will agree that we could not at this stave say MOT than is said in paragraph 5 of the enclosed savingram,

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