It is requested that in any further communication on this subject, the above Now may be quoted; and the Letter addressed to--

The Under Secretary of State for War,

War Office,

Pall Mall, London

(S.W.)

WAR OFFICE

12468

28 June

30 JUN 90

471

I am directed by the Secretary of State for War to acknowledge the receipt of your letter of the 12th instant forwarding two despatches from the Officer Administering the Government of Hong Kong respecting the cost of Defence Works in that Colony.

2. In reply, I am to inform you that from reports received in this office from the General Officer Commanding, it appears that the cause of the difficulty which has arisen is as follows: The figures shown in dollars agree in the Military and in the Colonial records, but in converting the dollar expenditure into Sterling, the Military authorities have taken the market rate of exchange at the days concerned, while the Colonial Government has used the Treasury rates.

The Under Secretary of State for Colonial Office.

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