only, which provision would be more than offset by a credit,

under Subhead N

Appropriations in aid in respect of the

first instalment of the contribution to be made by the

Government of Hong kong.

The effect of this arrangement is that while there

will be no net charge to Navy Vetes in 1952 in respect of the hospital, there will be a large commitment in respect of 1933 and subsequent years. There are serious objections at the

present time to the acceptance of commitments of this

magnitude and My Lords would only feel justified in sunctioning

the present proposal if they were satisfied that further

postponement is impossible.

As a first step, therefore,

They consider that the Government of Hong Kong should be approached formally through the colonial office and urged, in view of the financial situation in this country, to

conseat to the extension for a further period of the offer to provide free of charge, in re turn for the surrender of the

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