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through our General Account would earn such interest as we
are able to obtain on the unexpended balances.
6. In our proposal therefore the Special Fund stands to either gain or lose by the uncertainty of the rate of interest which may be earned on the unexpended balances, while in Sir M. Nathan's proposal the gain or loss would devolve upon the Colonial Government or the Railway Construction Account of the Colony.
7. In these circumstances we should be glad to be informed which proposal the Secretary of State considers should be adopted.
I have the honour to be,
3
Sir,
Your Obedient Servant,