CO129-606-2 Treasury control over Hong Kong finances 22-1-1948 - 9-12-1948 — Page 50

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Parliamentary reply that the possibility of taking similar action with

to Colonial territories outside Africa is being considered.

4.

ard

The purpose of the presunt despatch is twofold. In the first place, I should be grateful for any observations on the proposals themselves and in particular to be informed whether it is considered that there is any scope in any other territories for arrangements of the kind proposed for the African territories. I must make it clear that His Majesty's Government must hold themselves free to consider any proposals to this end in the light of all circumstances prevailing at the time, and that they are in no way committed in advance to the acceptance of such proposals. would require the most careful consideration in any territory in which either there is no unofficial majority in the Legislature, or in which an unofficial majority exists which has not yet had the opportunity of demonstrating that it is capable of exercising such additional responsibilities.

5.

In particular the proposals

In the second place, I should be glad to be informed as soon as possible if you consider that the announcement which I propose to make in the House of Commons would be likely to have any awkward or undesirable repercussions in the territory under your administration.

I should be grateful if any comments

that you may wish to make on this second point could be sent by telegram to reach me not later than 20th October.

6.

It is clear that devolutionary proposals in the form described in the enclosures to this despatch could not be applied to territories whose finances are under Treasury control (though I take this opportunity of stating, for your confidential information, that the whole application of the system of Treasury control is at present under review).

I have nevertheless felt it

appropriate to address this despatch to all non-African territories irrespective of the incidence of Treasury control, since the second of the two points mentioned

in the immedi tely preceding paragraph is not necessarily confined to non-

Treasury controlled territories.

I have the honour to be,

Sir,

Your most obedient, humble servant,

LISTOWEL

(for the Secretary of State)

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