CO129-606-5 Hong Kong Loan- Financial settlement 2-3-1948 - 4-10-1948 — Page 112

[7713] Wt. 40552/714 50m 2/48 C.N.Ld. 748

O.

Sidebb ham

1

/6/48.

Mr.

*x Sir S. Caine

/6/48.

Mr.

Mr..

Mr..

Permt. U.S. of S.

Parly. U.S. S.

Minister of State

Secretary of State

54126/6/48.

Coded & Sent.

1600 1.6.48.

71

111

H.C.

Your Reference.

2 DRAFT.S

CODE TELEGRAM

NO. 611

MOST IMMEDIATE

(70)

1.

GOVERNOR,

HONG KONG,

FURTHER ACTION.

Copy for 54126/5/65 Copy for Frames Dipl

The Bondellen

Copy for Thaany. (Infer full) Revise ginkly the Wallace

CONFIDENTIAL

Your telegram No. 526.

I agree that you should not oppose the

motion.

may

2. As regards 2(a), you should say that you

have my agreement in principle to relaxation

of Treasury control. I propose that, as a

first step, there should be a general review

of Hong Kong's financial policy, prospects

and administrative arrangements, in which I

suggest Follows should participate.

In light

of this review former Treasury control would

cease, and in its place would be substituted

arrangement of which following are principal

features:-

(1) Secretary of State's approval will be

required for:-

(a) annual estimates;

(b) additional expenditure not provided

in estimates involving items of

capital expenditure exceeding one

re-

million dollars or (current

expenditure exceeding 250 thousand

dollars per annum under each

individual head;

Jerem

as pundide to Reg 267

(c) new posts where salary execcus

dellars ;

/ (a)

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