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difficulty, it is probable, bad written demand has been sent in. Most that payment would have been made by the Treasurer as heretofore been occasionally done.

A formal written demand having been, however, made by the Commissariat on the Colonial Treasurer for the March Quarter in contravention of the understanding between the General and the Colonial Government, which prohibited direct correspondence, there was no alternative but to return the letter, and to request it be transmitted through the Assistant Military Secretary, payment being the matter in question.

The request thus made was not only disregarded, but the Commissariat again wrote to the Treasurer acting for the June Quarter notwithstanding that the Colonial Secretary had, under No 4, written by my express instructions to Colonial Treasurer enclosing copy of the correspondence with the Assistant Military Secretary in reference to the General's Memo.

8.

Under these circumstances I cannot see that this Government can be held responsible

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