CO129-606-3 Treasury control over Hong Kong finances 14-1-1949 - 1-12-1949 — Page 11

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1 regarding

revised

ite

arrangundi for financial

cuted in HIT

น

and

be obtained in all cases,/where substantial amounts or questions of principle are involved prior agreement of the Standing Finance Committee should also be obtained. It will of course be appreciated that a greater loss might be involved where a write-off of stores is in question and blan where a supplementary vote is required to clear a suspense account. I suggest therefore that writes-off, losses and abandonment of claims involving no question of principle and below a certain amount, the approval of the Financial Secretary should be required. Such cases should be referred to the Finance Committee as one item without details together with all other losses writes-off and abandoment of claims as separate items. Providing the Finance Committee agreed to the writes-off etc. the reference to, and approval of the Legislative Council would, except in very special circumstances,be purely formal".

3. I should have thought that a uniform procedure should be followed whether it is a case of a write-off of a loss of cash, or of an asset, or a remission of a claim. The amount of loss to Government is not affected by the type of the loss, and it is not clear why if a £100 is involved in a case under 1(a) of the enclosure to No. 5, the approval of the Legislative Council has to be obtained, but not if £200 is involved under 1(b).

4. I would suggest therefore that we send a further despatch to Hong Kong saying that the question has been raised as to the precise interpretation of paragraph 3(b) of our despatch No. 302 of the 24th September 1948/(No. 25 on 1948 file) and suggest that if the Governor sees no objection that as from the accounts of the current financial year a procedure similar to that referred to in paragraph above of this minute should be followed.

I agree, subjec

bernemer

12th August, 1949.

subject to DGCA's comment's

Miloners

12/8