4. A considerable amount of correspondence ensued with the result that the present system was adopted and judging from the tenor of the Governor's despatch it is not found to work well.

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5. As regards the objections to which reference is made in paragraph 3 I am still of opinion that the suspense account is the most business-like way of dealing with the question and I do not think that in respect of the second objection the present system gets over the difficulty as I much doubt whether, when large indents for stores are made on the Crown Agents, Legislative sanction is obtained. In this I am open to correction as I do not see the expenditure side of the accounts.

6. The Governor asks for a telegraphic reply to his despatch but without some further information I cannot see that there is any pressing hurry and I would suggest that if possible a meeting should be arranged to discuss the question and settle it.

7. I propose to leave here for London on the 17th inst. and shall report myself at the Colonial Office as early after that date as possible.

I have the honour to be,
Sir,
Your obedient Servant,
Hilgen
& Zuurthe

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