CO129-606-2 Treasury control over Hong Kong finances 22-1-1948 - 9-12-1948 — Page 54

ML 47244/1/48

COLONIAL

OFFICE

CIRCULAR DESPATCH 4

THE CHURCH HOUSE

GREAT SMITH STREET LONDON, S.W.I

16th June, 1948.

Sir,

54

Financial Devolution in Africa.

The Conference of African Governors held in London last autumn considered

the relations between the Secretary of State for the Colonies and Colonial

Governments in the sphere of finance and addressed itself particularly to the

relaxation of the formal controls exercised by the Secretary of State in this

sphere. I am in agreement with the general recommendations of the Conference

on this subject and consider that the changes set out in this despatch, which

will apply to all Territories in Africa whose finances are not under the control

of His Majesty's Treasury, should be brought into effect as soon as possible.

2.

It was agreed by the Conference that the Secretary of State's general

authority over the broad financial policies of the African Governments must be

retained, but that the Colonial Office should concern itself with detail only

to the extent necessary to secure the Secretary of State's interest in the

broad issues of fiscal policy, measures against inflation, exchange and currency

control, development finance and loan policy. The conclusion was reached that

the Secretary of State's interest in these broad issues can most effectively be

secured by consultation and discussion betw en the Colonial Office and the Govern-

menus concerned, which should keep the Colonial Office fully informed of the

financial situation in the Territory and should supply advance information with

regard to financial policy.

5. In accordance with these principles, it is my intention that formal control

over the finances of African Territories whose finances are not under the control

of His Majesty's Treasury should in future be exercised only through the Secretary

of State's function of advising His Majesty on the assent to the Appropriation

and Supplementary Appropriation Ordinances and other legislation of a financial

character, e.g. Loan Ordinances. Other types of formal control will be

dispensed with, except of course where payments by the Imperial Government are

The Officer Administering.

the Government of

involved,