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CONFIDENTIAL
that it is likely that the Secretary of State would ever need to intervene in Hong Kong's financial affairs but, in view of his ultimate responsibility to Parliament for all Hong Kong affairs, the Secretary of State should retain such residual standing in matters of financial administration as he has under Chapter VIII.
4.
However,
the law, then
In considering this matter we have, however, taken your point that during the correspondence between Hong Kong and the FCO over the Public Finance Bill in 1979 it wa s made clear that it wa s your intention that the Ordinance should supersede the relevant Colonial Regulations in due course.
I have explained the difficulties we now envisage in abandoning Chapter VIII of Colonial Regulations completely. Regulations are interpreted in the light of local and if there i s doubt or conflict between them, local law prevails.
I wonder therefore if requirements for clarity might be me t by a local instruction to the effect that in matters of administration officers are bound in full by the provisions of the Public Finance Ordinance 1983; and that these provisions supersede Chapter VIII of Colonial Regulations to the extent that the latter are inconsistent with them. We feel that this might meet our difficulties and yours. If you agree, we would have no objection to your issuing such an
both
,
your
financial
instruction.
Jens
ར་ ད
Tony Galang
A C Galsworthy
Hong Kong Department
CONFIDENTIAL
G
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