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Treasury Reference.

TREASURY CHAMBERS,

GREAT GEORGE STREET,

136

13

LONDON, S.W.1.

25th May, 1946.

Dear Mr. Palmer,

I refer to your letter of the 11th Nay to Mr. James, who is at present on leave, on the Foreign Office claim of 2500,000 in respect of expenditure incurred by the Consul at Macao.

Since it is clear that the grant in aid of £900,000 is insuffieient and that a Supplementary will be required to meet the deficit in the Hong Kong Government Fnds, this sum of £500,000 should be included in the Supplementary Estimate this year.

The claim will have to be referred to the Hong Kong Government for accounting check and for report by their auditors and the claim on U.K. Funds will therefore arise during 1946/47

Provision for the additional £500,000 should not be delayed until next March and the use of the Civil Contingencies Fund would not be justified.

Yours sincerely,

H. Palmer, Esq., 0.B.E.,

Colonial Office.

Jave Dawson.

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