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and, on a proportionate basis, that is taking proportion of Hong Kong's contribution to total revenue in 1940 as the standard, Hong Kong

Government funds are the obvious source for afta

meeting any deficit other possibilities have been exhausted. Having regard to figures in paragraph 2, we feel that we cannot reasonably ask for more than contribution suggested in

paragraph 3 from U.K. funds other than C.D. & W. and there is no repeat no prospect of getting

more than £200,000 from C.D. & W. We have assumed

for purpose of our calculations that receipts from voluntary appeal if one were made and any contribution from Dominion Governments are not de BE likely to amount to any substantial sums

5. Glad to know as soon as possible whether you agree to an approach to the Treasury on the

lines suggested in paragraph 3. Inasmuch as

these proposals contemplate an increase in

Hong Kong's liability, we should of course

present this so far as possible in the light of inevitable expenditure, so as to avoid any

prejudice to the general case for financial

assistance to Hong Kong from U.K. funds by way

of a contribution towards the cost of compensation for war damage or otherwise. Fudd.

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