TNAG-0570-FCO40-703-Planning-paper-on-Hong-Kong-1976 — Page 114

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Mr O'Keeffe

Reference....

hi

- 8 JUNZIO

68

File

Planning Pape

Карс

CONSULTATION ON FINANCIAL MATTERS

1.

The Colonial Secretary's despatch of 14 June 1958 proposed maximum use of informal consultation and the reduction of routine formalities to the minimum. In LEGCO following receipt of this despatch the Governor said:

"The Secretary of State has now informed me that in view of the good standing, financial and administrative, of the Colony, he will further relax the control ..(but)... he wishes to extend the principle of demi-official consultation which is already in use and I have agreed that the Financial Secretary will keep the Finance Department of the Colonial Office regularly and fully informed about this Government's financial policy and about the way this policy works out in practice. The Financial Secretary will take account of the views of the Financial Advisers of the Secretary of State in advising the Government on policy."

2. I have been unable to ascertain when the Financial Secretary in Hong Kong last corresponded with the Financial Department of the Colonial Office/FCO but the practice of consultation if it was ever carried out - would appear to have lapsed long before the present Financial Secretary's term of office.

The

3. The most recent example of lack of consultation is the proposal by the Financial Secretary to obtain a loan from ADB. Our infor- mation on this has been gleaned from newspaper reports etc. survey and explanations called for in paragraph 3 of the 1958 despatch

are not sent.

4. If it is agreed that greater consultation is necessary then either we insist on the instructions of the 1958 despatch being carried out or we redefine what consultations we require. In this connection it must be borne in mind that within HKIOD as at present constituted there is not the necessary expertise on which discussions with the Financial Secretary must be founded.

7 June 1976

T Duffy

HKIOD