Copy.

EXTRACT

from a letter from the Right Honourable

Sir L.Worthing ton Evans to Mr. Amery.

Dated 21st November, 1928.

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Before giving a definite answer to your letter

I should like to be clear on two points:-

(1)

As you know, one of my anxieties has been the

possible effect of a reduction in the Straits percentage

on Hong Kong. I gladly accept the assurances in your

letter on this point, but the proposal for a change

in the method of calculation at Hong Kong has only

recently reached the War Office, and we are still

examining it. If the concession you propose is to

be made to the Straits there would be some advantage in

not making it public until we have come to a definite

settlement with Hong Kong. Incidentally I am glad to

see from your letter that the Hong Kong proposals

involve dropping that Colony's claim for the refund

of £114,000; the Colonial Office letter about the

Hong Kong change did not mention this very welcome

fact.

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