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countenance should be given by the Supreme Colonial Government to the intimation conveyed, by Mr. Forth in his letter to the Acting Colonial Treasurer, of 9 November last (p. HG correspondence) that he repudiates the idea of his responsibility for which this subordinates have been sued at his request.

The Colonial Attorney General has reported, by his letter dated 4th December 1862, that the proceedings against the Thripps could not be decided, within a reasonable period, than 2 or 3 months from that date. Before any information can be made to the Colony these proceedings will have probably terminated, and the amount of the defalcation have been wholly, or partially recovered. Mr. Forth may be sued for the balance of the Colony; and for that purpose his Bond may be transmitted to the Colonial Government; or his Sureties in this Country may be sued upon their Bonds; but for confidence of the facts proving the defalcation should be forthcoming - the information sent being insufficient for the purpose.

I would submit that it will be sufficient to advise on the correspondence and the proper mode of procuring it when the necessity of putting the Bonds in force against the Sureties shall have arisen.

The Copy

I am &c.

(Signed) H.H. Reynolds

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