Officer Administering the Government intimates that without further reference to the Secretary of State to the Colonies he would not feel justified in making further payments.
I would point out that a copy of Colonial Secretary's letter of 2nd June last accompanied my letter to you of the 12th June. The reasons, therefore, which are therein set out in detail, why the Colonial Government refuse payment are now fully known to you, although from Lord Knutsford's despatch of the 18th July last it is not quite clear whether this information was at that date in his possession.
The Colonial Government, it appears now, ground their objections to payment on the reasoning that the arguments set forth in Lord Knutsford's despatch are mere "assumptions". These arguments, however, are founded on indisputable facts.