4. You will appreciate that the proposals we have now put to the Tunnel Company are those which I discussed with the Chairman of our Advisory Council and which he is prepared to accept in respect of a Section 1 risk. The original proposals which were the subject of my letter of 1st May and which represented the Section 2 position were considerably less liberal sines they gave no cover at all throughout the whole 10 year period in the event of the Colony being taken over. If it is now desired to take up an even more liberal position that that reached under Section ↑ for the reasons mentioned above is there sufficient justification for the re- introduction of the Treasury fall-back guarantee position in respect of the last 5 years?
5.
I am copying with enclosure to Carter in the Commonwealth office.
(K. W. Cotterill)