AH
Your Reference 54326/1/47
Tel. No.: Whitehall 1234
NATIONA
SCHER
Treasury Reference IF.16/04
TREASURY CHAMBERS,
GREAT GEORGE STREET,
LONDON, S.W.1.
copies sent to
50
25th July, 1947.
Dear Galsworthy,
Please refer to your letter of 14th July about the general question of charging to C.D. & W. funds appropriate expenditure in Hong Kong and other Far Eastern Colonies. I am writing.
19275/92/separately to Harding about his letter of 18th June, in which he
asked that the principles determining incidence of charge for
new expenditure in a Treasury-controlled colony should be confined to the West Indies for the time being. As I have already told you, we should not be justified in interpreting the provisions of an Act of Parliament, such as the C.D. & W. Act, 1945, in such a way that they only applied to certain specific territories and not to others.
We do not, of course, wish to impede Hong Kong's development of Co-operation and we will therefore agree to your proposal to appoint a Registrar of Co-operatives forthwith, on the under- standing that this is without prejudice to the eventual decision.
I must make it clear, however, that this is exceptional and that we must ask for you to press ahead with your consideration of the general principles to be followed in the Far Eastern Colonies (and particularly, having regard to the Treasury letter of 8th October, 1946, the grant-aided ones) in regard to C.D.W. expenditure. I have noted the argument in the last paragraph of
(6) your letter of the 14th July but I suggest that you might well
consider an arrangement whereby a suitable proportion of the cost
A.N. Galsworthy Esq.,
Colonial Office,
/of
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