Miss Brooks.
Legal Counsellor
CONFIDENTIALT
Reference
File
ли
INSTRUCTIONS TO THE GOVERNOR ON FINANCIAL MATTERS
1. Thank you for the helpful advice in your minute of
14 January to Mr Stone (who is away this week).
2.
I entirely agree that it would cause a major constitutional crisis if we directed the Governor to direct the Financial Secretary to transfer funds to HMG in the UK without the approval of LegCo or the Finance Committee. To: do so would fly in the face of our history and of present political realities.
3. However in order to convince the Treasury and perhaps our own Ministers that we are not crying wolf on the basis of abstract reasoning, I think we need to show that we have considered (albeit not in great detail) the practical mechanisms of such a step. Some colleagues seem to assume that the Secretary of State would merely have to send a telegram to the Governor instructing him to transfer the funds we require. Your minute explains that this would not do. But could you please elaborate on the Order in Council which would be necessary? Would it be something on the lines of "Notwithstanding the provisions of the Public Finance Ordinance of Hong Kong and of the Pensions Ordinance of Hong Kong the Governor may hereby direct, with the approval of the Secretary of State for Foreign and Commonwealth Affairs, that there shall be met from the general revenue any such payment: to HMG in the UK as he may deem fit in respect of the future entitlement to pensions of members of HMOCS and the exerciser of this power shall not be conditional on the inclusion of am estimate of such expenditure in the Appropriations Ordinance"?
Would it be possible (in law) to make such legislation by Act of Parliament rather than prerogative Order?
4.
CODE 18-77
منمحمد
N J COX
Hong Kong Department
WH 302
270 2650
cc: 16 January 1992
NC1ABK
CONFIDENTIAL.
Page 165Page 166
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