CO129-606-2 Treasury control over Hong Kong finances 22-1-1948 - 9-12-1948 — Page 76

In Side bothan 4/5 M. Bangittar The Palmer S

My dear Crombie,

3rd May, 1948.

Anod. (10)

769

You will have had a copy of the further telegram from Hong Kong, No.437 of the 1st May, about the financial settlement, and there will no doubt be further discussion on the details of that. I do not want to go into those here, but would like to urge upon you consideration of another thing.

Discussion has been going on for some time about the possibility of releasing Hong Kong from Treasury control. It seems to us here that an immediate announcemen that Treasury control was being terminated might go a very long way towards recovering the lost ground in public satisfaction over the terms of the settlement. Logically, it seems to me extraordinarily difficult to argue simultaneously that Hong Kong is so very flourishing that no substantial assistance is required, and that her financial prospects are so dubious that continued Treasury control is necessary. I wonder, therefore, whether you could consider urgently the possibility of making this announcement at once, that is before the postponed meeting

It is of the local Legislative Council on the 12th Pay? at least something which involves no immediate aŭdition to this year's Budget.

J.I.C. CROMBIE, ESQ., C.N.G.

Yours sincerely,

(S. Caine)