TNAG-0622-FCO40-770-Budget-of-Hong-Kong-1977 — Page 96

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b

eference.. FED 489/400/01

HONG KONG

RESTRICTED

COLONIAL OFFICE,

LONDON, S.W.1.

14 January, 1958.

NO:

96

DISTA

FURTI

Leci

ከ

1

sir,

I have the honour to refer to Mr. Creech Jones's despatch No. 302 of the 24th September, 1948, on the subject of the control exercised by her Majesty's Government over the finances of liong Kong.

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2. In reviewing the operation of those arrangements, i have come to the conclusion that they no longer allow adequate recognition of the good standing, financial and administrative, of Hong Kong and its Government and that the principle of consultation rather than control, enunciated in paragraph 4 of the despatch under reference, ought now to be further developed. I consider that in future I may be est equipped to discharge my ultimate responsibility to Parliament for the financial affairs of Hong Kong by making the maximum use of the process of informal consultation with you before decisions are taken and by reducing routine formalities to a minimum.

3. I propose therefore that the arrangements described in the despatch under reference should be superseded by the following procedure:

(a) On the informal side, the Financial Secretary, Hong kong, should be instructed to correspond necessary with the lead of the Finance Department, Colonial Office (with copies to the lead of the Far Eastern Department, Colenial office) and in particular to supply the following information:

(1) a broad survey of the ensuing year's

(11)

(111)

estimates, on the linca of the Financial Secretary's speech presenting the draft estimates to legislative Council (the survey to be received in the Colonial office one month before the estimates are so presented);,

a broad quarterly survey of the Colony's financial position and the trend of its financial policy;

a full explanation of any proposal for exponditure involving important new issues or variations of existing finanţial policy, for Government borrowing on other than a

/short-term

BRUN OMATOIR AIMIM JETERING

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