CO129-606-3 Treasury control over Hong Kong finances 14-1-1949 - 1-12-1949 — Page 28

川

HONG KONG AND PACIFIC DEPARTMENT.

3465/1.

3

27

With reference to the Secretary of State's despatch No. 302 of the 24th of September 1948 to the

(25) m2 48

Governor, Hong Kong, on C.0.file 54126/5/48, the (25) on Director of Audit, Hong Kong, has written to me as follows:-

'While there is no doubt that the approval of the Secretary of State is now required only for supplementary expenditure set out in paragraph 3 (a)(ii) of the despatch, it is not entirely clear to me whether or not the Secretary of State now re- quires to be informed by quarterly Statements or otherwise, of all supplementary expenditure which is approved by the Legislature".

2.

The terms of the despatch do not seem to envisage that quarterly statements of all supplementary expenditure approved by the Legislature will be required, and possibly the view has been held that such Statements are not necessary, as excess expenditure falling within the Governor's limit will be brought to the notice of the Secretary of State on receipt of the detailed statement of expenditure which is required to be transmitted under the provisions of Colonial Regulation 354(ii). I shall be glad if you will let me know if this view is correct to enable me to reply to the Director of Audit.

Director General Of Colonial Audit.

28. 2. 1949.