Treasury Reference

242/16/02

TREASURY CHAMBERS

GREAT dage2STREET

LONDON, S.W.1

5 December, 1957

(23)

Dear Ashton,

takster

Please refer to my letter of 23rd October, 1957, about the Imperial Defence contribution of £1m. which is due from Hong Kong in the current financial year. We are somewhat anxious about the position as three

quarters of the year (payments are normally made quarterly) have almost elapsed without, we understand, payment being made.

We are moreover rather disturbed that, so far as we can ascertain, no consideration has been given to this aspect of the problem in the official discussions of the size of the Hong Kong garrison which have followed from the meeting of the Defence Committee on 30th October.

In the light of the above, can you please let us know what action it has been possible for you to take, and what you propose to take, in connection with my letter of 23rd October?

Yours sincerely,

K.G. Ashton,

Esq.,

Paga 32iofi8office,

(W. Russell Edmunds).

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