i s

3.

- 2 -

(4) If on the other hand the capital cost shall amount

to more than $975,000, such additional expenditure shall

be regarded as outside the terms of the agreement. It

will be open to the Military Authorities to ask for a

contribution from the Colonial Government towards the

excess cost but the terms and conditions of such

contributions will need to be separately agreed.

(5) Similarly if it shall be found that anti-malarial

works are necessary in any areas outside that covered

by the plan, the question of the carrying out of such

works and expenditure thereon will be regarded as outside

the terms of this agreement and for separate negotiation.

This will be the case whether the necessary expenditure

on works within the area shown on the plan does or does

not exceed $975,000.

(6) The Military Authorities in carrying out the works

will maintain close liaison with the civil Directors of

Medical Services and of Public Works.

I gather from the enclosures to the letter under reply that the foregoing summarizes also Your Excellency's

view of the position. Should it not do so in any respect Your Excellency will no doubt communicate with me further.

I have the honour to be,

Your Excellency's obedient servant,

SD. A.7. BARTHOLOMEW

Major General.

Commanding The British Troops in China.

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