"Mr Forth, the Colonial Treasurer should be held responsible for the cost and expense of the legal proceedings against those Officers, and for the loss incurred by the defalcation, and whether, if proceedings were to be taken in this Country against Mr Forth's Sureties, as suggested by the Acting Governor of Hong Kong, there is sufficient information and evidence in these papers to put in Suit the Bond given by these Sureties.
(Signed) D. Peel
The Copy
23
$30
1.
PRINTED FOR THE COLONIAL OFFICE
No 53
A 2291
314 Chambers 28th February 1863
Downing Street, Hong Kong
I have read and considered the papers now sent by the Colonial Office in your Letter of the 24th instant respecting certain defalcations in the Colonial Treasury.
And in opinion on the questions desired, I beg to report.
With reference to the separate proceedings taken against the Shroffs on which proceedings have been taken in the Colony, I conceive that the Colonial Treasurer is legally responsible for the risk and expense of such proceedings (which were taken at his instance, and on his account), and for all losses occasioned by the defalcations in question.
The Secretary of the Treasury