of £20,000 is to be paid, commencing from the 1st of January 1965, but as that date has been fixed for the new policy to be brought into operation, and as there are reasonable arguments against applying the same principle retrospectively, His Grace would recommend, on review of all the foregoing considerations, that the sum expended for the construction of Lei Yue Mun batteries be allowed to stand as an item of Army expenditure.

The enclosures (in original) to Major General Branker's despatch are herewith returned.

Page 528

Jarnes

EX

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