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18 END

barracks and all other charges whatsoever."

which follows closely the wording of the corresponding Section

5 of the Defence Contribution Ordinance, 1201.

4.

The views set out in the above paragraph have been

explained to the local Military Authorities and I understand

that they have addressed the "ar Office to the effect that they

are prepared to accept liability, as from 1st January, 1941,

for the cash payment of an annual sum of $125,000 as rental

for the Sham Shui Po Camp site. If this proposed settlement

commends itself to Your Lordship I would request that it be

formally communicated to the War Office on behalf of the

Colonial Government.

5.

In conclusion I would add that this Government agrees

with the suggestion made in the last paragraph of the War

Office letter of 10th September, 1940, that any building works

which may become necessary before the termination of the war to

accommodate an increase in the existing garrison should be

dealt with as a separate matter without prejudice to the

eventual settlement of the questions left in abeyance during

the war.

I have the honour to be,

My Lord,

Your Lordship's most obedient, humble servant,

N. Sunt

Colonial Semetary

Officer Administering the Government.

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