CO129-606-2 Treasury control over Hong Kong finances 22-1-1948 - 9-12-1948 — Page 53

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IF.16/224/01

26th June, 1948

Dear Wallace,

Please refer to your letter of the 23rd June about the Leighton Hill Flat Building project. While we agree that there would be no useful purpose wi be served at this stage and in present circumstances

by pursuing the matter further with Hong Kong, I am súre you will share our view that the Local Government's handling of this particular scheme does not provide reassuring evidence that the form of consultation which it is proposed to substitute for the old control, will be firmly based. As you will appreciate, full and frank consultation between a colony and H.M.G. can only operate successfully (as it does on the whole in the case of e.g. the Federation of #alaya) if the local administration 18 prepared to keep to its side of the bargain. I trust that opportunity will be take of bringing this important point to the attention of the Hong Kong authorities.

Youre sincerely,

.I.J. #allace, Esq., Colonial office.

Seen by H' Sidebotham

IN Bourdillon

Mr Follows

1. P. BANCROFT