CO129-606-4 Hong Kong Loan- government grant 1-4-1947 - 2-3-1948 — Page 23

54126/6/47

Colonial office,

Church House,

14

Great Smith Street, 23

S.n.1.

16th February, 1948.

Dear Pitblado,

Hong Kong Financial Position

In my letter of the 29th January I sent you

a copy of a despatch from Hong Kong and gave you rough figures for that Colony in connection with the me meeting held last Saturday to consider Falayan proposals for assistance from U.. funds.

2. I think it was agreed at the meeting that it would be useful if we could soud in our proposals for Hong Kong quickly, so that they could be considered in conjunction with those for Malaya.

3. Before setting them out, I would like to emphasise that they are based on two important assumptions, namely

(a) that it is eventually decided that no

compensation should be paid in respect of war damage in Hong Kong except where there is a legal liability, and

(b)

that Hong Kong should not be called upon to make a contribution towards the cost of Military Administration.

4. There is the further general proposition that with a final settlement on the basis of our proposals or something like them, detailed Treasury control of Hong Kong finances should terminate. There would

D. B. PITSLADO, ESQ.

have