CO129-606-2 Treasury control over Hong Kong finances 22-1-1948 - 9-12-1948 — Page 58

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understanding that the approval of the Legislative Council will be obtained

for all writes-off, with prior reference to the Standing Finance Committee

where substantial amounts or questions of principle are involved, and that

similarly the Standing Finance Committee will be consulted regarding the

abandonment or omission of claims where substantial amounts or questions of

principle arise.

10.

The formal sanction of the Secretary of State in connection with loan

expenditure under Colonial Regulations 279 to 283 will no longer be needed,

although Governments will of course understand that proposals for the raising

of all loans, including local loans, and the issue of securities will necessarily

continue to require my agreecmnt. The consent of the Capital Issues Committee

will of course continue to be required for the issue of loans on the London

market. In view of international obligations I also desire that proposed

changes in customs rates and regulations, whether or not associated with the

Annual Estimates, bo referred to me.

11.

I intend to address you separately on the control of the Colonial Develop-

ment and Welfare Vote, but Governments will appreciate that expenditure from

His Majesty's Government's funds will continue to require my prior approval

which in the case of the Colonial Development and Welfare Vote will be

conveyed by my approval of the schemes in question, or their subsequent

variation.

12.

This despatch is not itself intended for publication, but it will clearly

be desirable that the Legislative Councils of the Territories, and the East

African Assembly, should be informed at an carly date what changes it is

proposed to make with regard to financial procedure, so that they may have an opportunity of commenting on them. I suggest that it will be sufficient if

the Legislative Council is informed of the substance of the changes to be made,

and, if you agree, you will no doubt arrange for this to be done in whatever

form is most appropriate.

I shall be gatof.1 if you will in duc course inform

me of any comments which the Legislative Council make on the changes,

13. I am addressing this despatch to the Governors of all the African Territories, to the British Resident, Zanzibar, and to the Chairman of the East Africa High

Commission