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129th Regiment were not told that horses are unnecessary in Hong Kong, they brought them. They cannot sell the horses, therefore they have to keep them.

All these facts are fully set forth in the correspondence at the War Office, and I most strongly urge that this unpleasant question be thoroughly gone into. It does not appear to me to be impossible to devise a sliding scale of compensation which would adequately meet the case, and be fair to the individual as well as to the taxpayer at home.

The Colonial allowance now granted appears to be altogether inadequate.

HORSE GUARDS, WHITEHALL, S.W.,

30th April, 1907.

ARTHUR,

Field-Marshal,

Inspector-General of the Forces.

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APPENDIX A.

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