CO129-606-2 Treasury control over Hong Kong finances 22-1-1948 - 9-12-1948 — Page 30

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SAVINGRAM

حمد

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To the Secretary of State for the Colonies.

From the Governor, Hong Kong.

Date 9th October 1948.

No.679. CONFIDENTIAL

2930

(25)

X

Your Circular Despatch (Confidential) of the 23rd. August, 1948.

Financial Devolutin.

I agree that the proposals contained in the enclosures to your despatch are wise and reasonable and it is my view that they might well be applied to this Colony, even though there is no unofficial majority on the Legislative Council.

2. Replacement of the conception of informal consultation for that of formal control seems to me in fact to make for more efficient control. The existing practice of requiring prior approval for the Annual Estimates for example seems to have been somewhat ineffective in the past in so fer as Hong Kong is concerned, for it will be recalled that your approval of the Estimates for the two financial years 1946/47 and 1947/48 was not received until after the termination of the periods in question.

·(30)

3. I am replying separately to your despatch No.302 dated the 25th September,1948, which I have just received.

I cannot

but feel that an unfortunate impression must inevitably be created by the coincidence in point of time of the announcement of the abolition of Treasury control and relaxation of Colonial Office control over Hong Kong finances with the proposed Parliamentary question and answer on Financial Devolution. It is, I consider, bound to be pointed out that it is entirely illogical and discriminatory to grant to Hong Kong, the banking and commercial centre of the Far East and one of the greatest ports in the world, a degree of financial control substantially less than is to be accorded to relatively undeveloped colonies in Africa.

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