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provided without delay (2) in a house which would bear

7.

the name of the Hongkong Hospital for the Royal Flying Corps,

(3) expenditure on which would be limited to the funds made

available by the Hongkong War Charities Committee.

We regarded these three undertakings as the

basis on which agreement was reached. It involved giving

Hongkong a distinct part of the Hospital to support. That

is to say, the request originally made by the Colony had

been conceded.

It seemed to us that a further modification

of the attitude originally adopted by the War office could

be read into the statement that the "cost of upkeep would

be regulated according to the funds made available",

the

inference being that "the funds made available" were to

be devoted to "the cost of upkeep", namely, of the Exten-

sion.

We at once pointed this out to the President of

the Hospital, who could only say that he had drafted the

telegram himself and that he had not intended these words

to convey this meaning.

Our concern, however, was to know how you had

understood them. On enquiry at the Colonial Office we

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