TNAG-0453-FCO40-518-Budget-of-Hong-Kong-1974-1975-1975 — Page 13

GRS 400

EN CLAIR

RECEIVED IN

REGISTRY No.52

FM HONG KONG 040530Z

4 NOV 1974

UNCLASSIFIED

NICK J

Thy

lair

38

TOP COPY

"I.,

B.U/25 Nov D

noted

TO ROUTINE F C O TELEGRAM NUMBER 1890 OF 4 NOVEMBER. 1974.

Now

in

VOTE ON ACCOUNT.

OUR PRACTICE FOR THE BUDGET DEBATE HAS BEEN TO ISSUE THE DRAFT ESTIMATES AND SUPPORTING DOCUMENTS TO MEMBERS OF THE LEGISLATIVE COUNCIL IN MID-FEBRUARY AND FOR THE FINANCIAL

SECRETARY TO MOVE THE SECOND READING OF THE APPROPRIATION

BILL AT THE END OF FEBRUARY. A COMMITTEE OF THE COUNCIL CONSIDERS THE DRAFT ESTIMATES AND COUNCIL DEBATES THE

APPROPRIATION BILL IN MARCH WITH A VIEW TO IT BECOMING LAW

BEFORE 1ST APRIL.

2. UNOFFICIALS HAVE NOW ASKED FOR MORE TIME FOR THE DEBATE ON

THE GROUNDS THAT THE PRESENT PROCEDURE GIVES THEM INSUFFICIENT

CHANCE TO PREPARE. WE WOULD LIKE TO MEET THIS REQUEST.

3. WE HAVE CONCLUDED THAT, BECAUSE OF THE ADMINISTRATIVE

DIFFICULTIES INVOLVED, WE COULD NOT, DO SO BY PRESENTING THE DRAFT ESTIMATES AND MOVING THE APPROPRIATION BILL ANY EARLIER

THAN WE DO NOW. WE THINK THE ONLY PRACTICAL EXPEDIENT WOULD

BE TO EXTEND THE DEBATE BEYOND 1ST APRIL. WE HAVE EXAMINED

VARIOUS WAYS IN WHICH THE BUSINESS OF GOVERNMENT COULD BE

FINANCED TEMPORARILY IN THE NEW FINANCIAL YEAR BEFORE THE

LEGISLATIVE COUNCIL HAS VOTED THE FULL SUPPLY. WE HAVE

CONCLUDED THAT THE LEAST CONTRIVED AND MOST STRAIGHT FORWARD

SOLUTION WOULD BE TO ADOPT A FORM OF THE ''VOTE ON ACCOUNT''

PROCEDURE.

4. UNDER SUCH A PROCEDURE, WE ENVISAGE THAT, AS AT PRESENT, WE

WOULD PRESENT THE DRAFT ESTIMATES IN MID-FEBRUARY AND THE

FINANCIAL SECRETARY WOULD MOVE THE APPROPRIATION BILL AT THE

END OF THE MONTH. THE BILL WOULD BE IN ITS PRESENT FORM, THAT IS SEEKING APPROPRIATION, FROM THE GENERAL REVENUES, OF THE TOTAL AMOUNT INCLUDED FOR EXPENDITURE IN THE DRAFT ESTIMATES SUPPORTED

BY A SCHEDULE GIVING THE AMOUNT UNDER EACH HEAD OF EXPENDITURE.

/ BUT, IN ADDITION,