2.

20 END

omission occurred:

it may be that the fact that the scheme

would take three to four years to complete was overlooked or that it was assumed that the Lords of the Admiralty would

not in equity press for payment of the final instalment

until they were in a position to hand over the areas in

question.

3.

While there may be some substance in the claim

put forward by the Lords of the Admiralty, I submit that it

is fundamentally inequitable and entirely contrary to the

spirit of the amicable arrangement which was entered into

by the Admiralty and this Government.

I trust, therefore, that you will see your way to press for a postponement of the payment of the final instalment until Their Lordships are in a position to carry out their part of the agreement and hand over the Naval

Arsenal Yard free from encumbrances.

I have the honour to be,

Sir,

Your most obedient, humble servant,

Live

Governor, &c.

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