481

DRAFT.

5.

I am to add that Lord Knuts-

ford demurs to the statement, in para-

graph 17 of that letter to the Trea-

sury, that the cost of providing Bar-

racks for the increased garrison at

Hong Kong is "to be shared equally

between Imperial and Colonial funds".

Mr Stanhope has apparently overlooked

the 4th paragraph of the letter from

this Department of 4th November last,

in which it was pointed out that no

agreement had been arrived at as to

what proportion the Colony should

contribute towards the cost of these

barracks.

I am,

Sir,

Your most obedient servant!

E.7.

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