TNAG-0453-FCO40-518-Budget-of-Hong-Kong-1974-1975-1975 — Page 9

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Mr Pauncefort (G&GD_K_274)

Mr Davies (FRD G 60A/G)

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HONG KONG: VOTE ON ACCOUNT

1. I should be grateful for any comments you have on the proposal in Hong Kong telegram no 1090 to the FCO (copy attached). This is, briefly, that the Hong Kong Government should adopt a "vote on account" procedure to provide temporary financing between the beginning of the 1975/76 financial year and approval of the budget estimates, even though this is contrary to colonial regulations.

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D K Timms

Hong Kong & Indian Ocean Dept

6 November 1974

D K Timas

HKIO K 247)

Mr Davies

FRD ( G 60A/G)

1.

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The proposal seems reasonable and I see no objection to approving it in principle subject to the concurrence of the Hong Kong legislative council.

It is usual however, for votes on account to be limited to a maximum period and to be related to the approved estimates plus supplementary estimates for the preceding year, the principle being that the vote on account should only be used to maintain services which the legislature has previously sanctioned. Hong Kong may, therefore, wish to consider the maximum period they would require and to avoid reference to "the draft estimates" in their proposal (paragraph 4). The maximum period is usually expressed as four months from the beginning of the financial year, or the coming into operation of the appropriation ordinance, whichever is the earlier.

There are precedents for modifying the application of other Colonial Regulations to Hong Kong, and I see no objection to the application of Colonial Regulations 182 and 214 being modified accordingly when the formal proposal is submitted.

6 November 1974

Finbarter

FEL Carter

Gibraltar & General Department K274

MA 468