CO129-606-2 Treasury control over Hong Kong finances 22-1-1948 - 9-12-1948 — Page 43

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

during the current financial year and then review the matter. I have included dates accordingly. A circular despatch about financial devolution (a copy of which I attach for easy reference) has recently gone out to non-African Governments and our proposed despatch must clearly take this into account. It has seemed best to do this by relating consideration of the circular despatch to the review of Hong Kong arrangements proposed for the end of the current financial year.

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5% Gur understanding of the Secretary of State's relations with the Treasury (as distinct from the Hong Kong Goverment's relations with the Secretary of State) is that there would be prior consultation with the Treasury before the Secretary of State gave his approval under paragraph 3 (a) (i) (iii) or (iv) of the despatch, that he would send the Treasury copies of correspondence under paragraph 3 (a) (ii) (prior consultation would of course be required if the proposed expenditure also fell under paragraph 3(a) (iii)) and of paragraph 3 (b), and that generally he would keep the Treasury informed of, and consult them on, all important matters affecting Hong Kong finances.

6. We should be glad to know whether you have any comments on the proposed despatch or on paragraph 5 above.

(c)

Yours sincerely,

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