TNAG-2471-FCO40-3595-Confidential-talks-between-the-UK-and-China-regarding-financ-1992 — Page 165

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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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