37

2. It appears to

the S. of S.

that the amount of the contribution proposed

by the Governor is in excess of that which

would normally be expected to be paid annually

by the Colony for the next five years on the

present basis of assessment.

Nevertheless, he

supports the Governor's proposal in view of its

advantages to the Colony in avoiding the many

difficulties caused by the present system.

He considers the proposal to be a generous one to

H.M. Government and he trusts that

(1) Their Lordships

(2) the Army Council

will be prepared to approve the preparation

of an agreement on the basis proposed.

3.

If further discussion of the Governor's

despatch is desired the S. of S. would suggest

that the matter should be considered at an inter-

Departmental meeting.

4.

A similar letter is being sent to

(1) The War Office

(2) The Treasury.

I am. etc.

(Signed) H. R. COWELI

bered one.)

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