from the enclosed statement that expenditure by the Colonial Government was incurred in consequence of the occupation of Sham Chen, beyond the cost of the telegrams referred therein, Mr. ... will have to consider the question of asking the Treasury for a refund in respect of such expenditure. The military expenditure referred to in this statement will be a charge upon the Amy Fund, since the Colony of Hong Kong pays a fixed portion of its annual revenue as its share of the cost of its defence.

4. A copy of this correspondence has also been forwarded to the War Office.

DRAFT.

Your Hong Kong despatch No. 4037 of ... Hong Kong to Colonial Secretary Sir H. A. Blake.

MINUTE.

Mr. Fiddian 10/2

Sir W. Hamilton 13/2

Mr. Antrobus,

Mr. Cox.

Mr. Lucas.

Mr. Graham.

137 Sir E. Wingfield.

Earl of Selborne.

Mr. Chamberlain,

20757 IF

I have the honour to acknowledge the receipt of your confidential despatch of the 4th ult., forwarding a statement of expenses incurred in consequence of the occupation of Sham Chun.

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