TNAG-0103-FCO40-139-Briefs-and-background-notes-for-Lord-Shepherd-1967 — Page 3

From

TOL

CONFIDENTIAL

DRAFT

Xr. H.P, Hall

R.A. Dickinson Esq., C.M.G.,

Export Credits Cuarantee Department, Barrington House,

59-67, Gresham Street,

London, E.C.2.

Hong Kong Wa

In your letter reference SL/CW 24126/35 Pt. 3

af 5 October you raised various queries about the Governor's need to consult Lagislative Council over the security you require for the Government's guarante 2. Letters Patent issued for Hong Kong provide

that the Governor legislates "with the advice and consent of the Legislative Council. The Legislative Council is accordingly the Colony's sole taxing and spending authority so that acceptance of the liability envisaged in the present proposals must be with the Council's consont. The first step must be to put the proposals before the Standing Finance Committee of the Legislative Council; if the Committee agrees, a resolution will then be moved in the Legislative

of the proposals Council seeking the Council's approval in general

terms.

3. The Governor could not conceal any details of proposals from the Standing Finance Committee; it would be necessary to explain in full the nature of th guarantee and the requirement that it is secured on London assets of the Hong Kong Gɔvernment.

Since some

unofficial members are known to be opposed to the Tunnel project, there is sure to be debate in the

resolution before the Legislative Council; the

/details