}

"He therefore ret med to London, where he was able to persuade his

colleagues in the Cabinet to look at the matter again, and in a wholly

fresh light. As a result, a contribution of £4.7 m. a year was suggested,

plus a sum sufficient to pay for certain parts only if the existing program e

of capital works for the services. This last sum wa found on examination

to emount to some £3 m.; or £ m. less than the sun we had already under-

taken to pay, but had not yet paid, under the existing £6 m. capital

works programme. This hen was the proposal Mr. Lee brought with

him when he came to visit us for the second time -£4.7 m. a year plus

£3 m. for capital expeniture.

"After Mr. Lee's arrival, the first thing that happened was that,

as a result of our re-e: amination of the figures and our negotiations, in

all of which the milita: y staff here was most unders anding and helpful,

the sum of £4.7 m. was educed to £4.5 m. We then went on to consider

other aspects of the problem.

"Now I do not want to confuse you with figures if I can avoid it

the position is in fact a little more complicated than I am making it here

but I must remind you that, apart from this proposal of Mr. Lee's we were

also under separate agreement to pay the reduced balance still due on the Naval Dockyard site, amounting at the present time tṛ £1⁄2 m.,

and

a balance of £11⁄2 m. under the agreement by which Whitfield Barracks is te

be released.

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