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37

TREASURY CHAMBERS.

1st February, 1918.

Sir,

I have laid before the Lords Commissioners of lis

Majesty's Treasury Mr. Corco.an's letter of the 7th ultimo, (48/Colonies/470 F.2.), proposing to revise terms of the recently approved concession to officers and men serving in China.

In reply I am to state that it does not appear that

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in the opinion of the Army Council the case of the Military Attache or Assistant Military Attache in Feking can be distinguished from those of oth. r Army officers; and having regard to the fact that the rise in cost of living in China and Hongkong has been appreciably less than in the United Kingdom and in the majority of neutral European countries, My Lords on

resent information think it reasonable to leave these officers to bear the burden of adverse exchange partially off set as it is by relatively favourable prices to the extent involved by existing arrangements. As regards the case of the Kilitary Attache and Assistant Military Attache at Feking in particular, I am to point out that these officers rank as members of the diplomatic, not of the consular service; and that the exchange compensation terms granted to consular o.ficers in China have not in fact been conceded to the diplomatic representatives in that country.

Jecretary,

war Of.ice.

I am, Sir,

Your ob dient Servant,

(Sa)

RENT CHALKERS.

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