CO129-606-2 Treasury control over Hong Kong finances 22-1-1948 - 9-12-1948 — Page 39

.

(1)

(ii)

the annual estimates

Supplementary expenditure not

provided for in the estimates involving items of capital (ooo) expenditure exceeding $1,000,Tor recurrent expenditure exceeding $250,000 per annum

(iii) expenditure involving important-

points of principle.

(iv) the terms of issue of Government

loans

(b) The authority of the Secretary of State

will no longer be needed under Colonial Regulations 240 and 278 for the writing- off of losses, the abandonment of

omission of claims or the writing-off of assets, on the understanding that the approval of the Legislative Council will be obtained for all writes-off, with prior reference to the Finance Committee where substantial amounts or questions of principle are involved, and that similarly the Finance Committee will be consulted regarding the abandonment or omission of claims where substantial amounts or questions of principle arise.

(c) The Secretary of State will be kept fully

informed of the Colony's financial position and of the general trend of its financial policy by quarterly statements, supplemented by more frequent statements as circumstances may require - e. g. in the months preceding the submission of the estimates to the Legislative Council.

(d)

the Lords Commissioners of H.M, The Secretary of State will keep majesty's

Treasury informed of all important matters affecting Hong Kong's finances and will consult them on these as may be necessary.

4.

The key-note of the proposed arrangements is

Intended to be consultation rather than control and in

order that this end may be achieved you will, I am sure, appreciate that I shall need to

Carter that I should be kept as fully as possible informed

financial trends in the Colony and be consulted

01'

at an early stage regarding proposals for expenditure

which require my approval under the terms of paragraph 3

2

above; or under specific Colmical Regulationing such as Colmial Rynlation 267.

5. I should be glad to know whether you have any

comments on these proposals or whether you agree that

they should be put into effect as is proposed in para 2 abere

I have, ejn.

}

A Crath domes