CO129-617-7 Development- possible implementation of CD and W Committee recommendations 18-2-1948 - 12-10-1948 — Page 58

54403/48

The Church House,

Great Smith Street,

London, S.W.1.

58

14th May, 1948.

1

Dear Serpell,

I send herewith a copy of Hong Kong despatch No. 244. of 23rd October, 1947, together with a copy of its enclosure. The despatch forwards and commends for con- sideration proposals of the Hong Kong Colonial Development and Welfare Committee involving expenditure of £500,000 from Hong Kong C.D. and W. allocation of £1,000,000 on agricultural and fisheries schemes for the New Territories.

2. These proposals have been examined here and, subject to your agreement, it is proposed to reply to Hong Kong as in the draft despatch attached.

3. The Hong Kong Report appears to have been drawn up on the assumption that development expenditure must be limited to the amount of C.D. and W. assistance, it being stated in paragraph 3 of the despatch that "the Colony has no foreseeable means of supplementing Colonial Development Fund grants". This point is taken up in paragraph 3 of our draft, where a separate communication on this subject is promised, which would urge that, as soon as Sir Patrick Abercrombie's report is available and the Colony's development needs as a whole can be examined, further consideration should be given to the Colony itself providing finance for its development plan, either by way of appropriation from revenue or by way of Government loans or otherwise.

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While we should be grateful for any comments you may wish to make on the proposals as a whole, you will note

D.R. SERPELL. ES

O.B.E.

/ that