22nd February 1946).
In your telegrams No.6 and No.533 you [53652/47
envisage that the Colony will be able to balance
its budget in 1947/48 so far as recurrent
expenditure is concerned, but that special
expenditure to be met from loan funds will amount
to $60,000,000 in addition to the $40,000,000 in
1946/47 referred to in your telegram No.450.
Further special expenditure will doubtless be
required in subsequent years. In addition
there is a possible liability in respect of war
you hugan hid
damage compensation which, in paragraph 10 of your despatch No.164 is estimated may be as high as
$740,000,000.
55/54126/1/46
3. I would also refer to my telegram No.476 [5/55077/2/47
regarding expenditure in Macao and to your reply
:
No.534. Of the total Foreign Office claim of
£478,629, £11,509 relates to expenditure on
pensions and salaries of Hong Kong Government
officials and I assume that there will be no
difficulty in meeting this expenditure, provided
it is satisfactorily vouched, from Hong Kong •
Goverment funds, and that it is only in respect of that part (£467,120) of the claim relating to
relief, to which political objection may be raised.
In paragraph 3 of your telegram No.534, in addition [6/55077/2/47
to the expenditure in Macao, you refer to possible
objections being raised to Hong Kong being charged
with expenditure on the return passages of those
who were sent to the United Kingdom and other
countries after the liberation of the Colony, and
with the expenditure on the demobilisation and
pensions of the Hong Kong colunteers. This
latter question was also referred to in your
It is savingram No.464 of 30th December 1946.
[36550/19/46
/Observed
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