3rd June, 1937.

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3

Dear Caldecott,

Our Legal Advisers reacted, as would be

expected, rather reluctantly to my invitation to

advise on the necessity or otherwise of the Power

of Attorney.

They said that, not knowing the

circumstances in which the local authority in

Hong Kong had thought it right to ask you to execute

the Power, they would only say that the duties and

powers of the Governor as set out in the Letters

Patent could by express provision be exercised by the Officer Administering the Government.

But Lockhart-Smith is, as you know

temporarily working in the Colonial Office and I

had recourse to him. He tells me that he, in fact,

drafted the Power of Attorney and knew the history

of it. He says that it is concerned with some

outstanding affairs of the trade loan and that the reason why N.L. Smith finds that the Power never seems to have been used is that those outstanding

SIR ANDREW CALDECOTT, K.C.M.G., C.B.E.

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