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Mi Wallace Mr Bryant JG.CA
M'Frondellen.
(No.17). I am not quite sure what are the full details referred to in paragraph 3. Paragraph 2 (i) indicates the Secretary of State's control and so
far as Hong Kong is concerned it is of no direct interest to them to what extent the Colonial Office agree
to consult the Treasury before the S. of S. gives
his approval.
2. If, however, we consider the S. of S.'s control first, the following points arise
(a)
X
It has been suggested that under (2)(ii) quarterly payments will suffice.
Artiments
(b) Writes-off of losses etc. Certain limits
of the Secretary of State's powers have already been agreed upon - see paragraph
I'ma 9 of No.20.
(c)
5 of No.6 on the 1947 file. I see, however, that in the case of the African Colonies, the S. of S's authority in no longer required for writes-off. (Para.9 of circular despatch No. 4 of 16.6.48) In my experience all authority for writes-off tend to be E/A formal and at the word the Secretary of State reads the Colony a short lecture. I am, therefore,
in favour of following the African precedent. If, however, this is thought to be going too far in the case of Hong Kong we could arrange that the S. of S's authority should be required in cases above the limits indicated in para.5 of No. 5 on the 1947 file, but in no case would Treasury authority be required.
No. 17 does not mention the S. of S's authority for the term of loans whether local or in the U.K.
This could mentioned when the further communi- catione sent to Hong Kong.
3. As regards Treasury "control" over the Colonial Office, I suggest that we should secure Treasury agreement before the S. of S. approves 2 (i) (a) and (d) or
No. 17; also the terms of any loans; and copies
of periodical financial reports under 2 (ii) to be sent to the Treasury; also we should send copies of correspondence under 2 (b) acest to the Treasury for information. We should generally keep the Treasury informed of, and consult on, important matters affecting Hong Kong finance s.
4.
A
The above arrangements should operate as from 1st April 1948 and be subject to review by 1st April 1949. Subject tp any comments by the Accounts Dept. and the D.G.C.A., by? submit above to Treasury for their agreement. Perhaps Accounts Dept, would also indicate what arrangements have been made with the Treasury as regard clearing up any Treasury authorit which may be required in respect of Hong Kong accounts up to 31st. March 1948.
Ve 16/48
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