CO129-606-3 Treasury control over Hong Kong finances 14-1-1949 - 1-12-1949 — Page 21

COLONIAL

DIEUS

3465/1.

AUDIT

DEPT

COLONIAL AUDIT DEPARTMENT,

QUEEN ANNE'S CHAMBERS,

3, DEAN FARRAR STREET,

5

21

LONDON, S.W.I.

19 th May 1949.

(25) on 48

(20)..

Mr. Palmer,

Finance Department.

inanc

I enclose a copy of a letter sent to me by the Director of Audit, Hong Kong, in which he raises the question whether the abandonment or remission of claims requires the approval of the Legislative Council.

2.

The procedure adopted by the Hong Kong Government is as stated in paragraph 1(b) of the Director of Audit's letter. I shall be glad to know whether the Financial Secretary has correctly inter- preted the intention of paragraph 3(b) of the Secretary of State's despatch No. 302 of the 24th of September 1948 (C.0.File 54126/5/48) in this matter, to enable me to reply to the Director of Audit.

3.

In this connection I see that similar provisions are included in paragraph 9 of the Secretary of State's Circular Despatch (4) of 16th June 1948 (C.0.File 47244/1/48) concern- ing financial devolution in Africa and it is, therefore, possible that t is question has already arisen in another Colony.

Münche

Director General

Of Colonial Audit.