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Defence Contribution of £116,000 should be made, as set forth in the Memorandum by the Commanding Royal Engineer which accompanied your letter. He is unable to accept the proposition contained in point ... regarding subsequent payments.
Payments to subsequent dates of March should be calculated at the rate of exchange on the 31st of that day.
The principle laid down by the Secretary of State for the Colonies is that the basis of calculation should be as far as possible the rate of exchange current on the days the bills were actually paid, and His Excellency sees no sufficient reason why this principle should not be followed throughout.
If the Major General Commanding is unable to concur in His Excellency's views on this point, the comparison of accounts might be proceeded with as suggested with a view to ascertaining what balance remained on the 31st of March, while the question regarding subsequent payments can be referred home.
I have ...
(Signed) H. M. Deane
Act. Colonial Secretary
AA