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schedule, and if you agree with the views expressed above, we must rely upon

administrative action to ensure that in practice a sufficient proportion is remitted to the Secretary of State.

Before we reply officially to your

despatch we should be glad to have your views on the question which I have discussed above and to know what your suggestions would be for dealing with it.

The point at issue is one which will have eventually to be put up to Ministers but I think it best to await your reply to this letter before submitting it.

We hope to telegraph shortly about your proposal for Megarry, with which your despatch No.58 of the 1st April deals.

(SGD). 7.I.K. LLOYD.

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