XXX SECRET.

Sir,

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Seerer 6214/150/39

GOVERNMENT HOUSE,

HONG KONG.

3rd July, 1939.

Ausd 11

Enclosure No.1.

Enclosure No.2.

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Q⋅RP days (16)

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I have the honour to refer to your secret despatch

of 1st June, 1939, regarding the programme proposed by this

Government in the matter of passive defence measures against

air raid attack, and to inform you that in view of the

opinion there expressed that the programme, although

generally suitable, should be expedited as much as possible,

a revised estimate of expenditure to be incurred in the

present financial year has been drawn up. This involved an

increase of more than $1,500,000 in the expenditure approved

in the 1939 estimates, but after confidential discussion the

Finance Committee of Legislative Council agreed to approve

the necessary provision. Detailed votes were accordingly

submitted in Finance Message No.6, a copy of which is

enclosed, and approved by the Finance Committee at a meeting

of 29th June. I enclose also for your information a copy

of a statement on the subject which was made in Legislative

Council by the Colonial Secretary on the same date.

2.

In view of the terms of your despatch under

reference I have assumed that you will be prepared to

approve the necessary financial provision to proceed as

rapidly as possible with these measures and orders for

equipment, etc., are accordingly being transmitted to the

Crown Agents for the Colonies. I have now to request your

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&C.,

&c., &c.

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