by 2

54.

a further point which we should like to cleared up.

re

(iii) The Governor has referred to resinations

of experienced staff but we should like : information as to the degree to which this has taken place i. e. numbers and grades, and any other circumstances.

on capital" (iv) The question of "living on cay itál" was also

raised and we felt that it is up to hong kong to establish their case on this issue, the importance of which we recognise. (v) Finally, we did not altogether understand

the role that the Salerics Commission is playing. We felt it might damage its chances of accomplishing one of its prime aims,i. e. an overall settlement its sponsorship of these interim oronosale alter holding only one session.We wonder whether it could have

adequately considered them against the general background. of its task in the Colony.

54:26/6/47

On the question of the further amendment of para 5 of the draft despatch to Hong Long enclosed with your letter of 22nd April, you agreed to take back with you for further consideration the following formula which is an amalgam of your new version and Serpell's suggestion for the last sentence :

"There is one other point to thich reference should be made in the appreciation. In vara ?(iv) of the Appendix to War Office letter 16/Abd/1693 (C. A. 4) of 23 Feb 1945, a copy of which was referred to in the communication to the Commander-In-Chief, No.6258 of 17th Oct 1945, it was stated

to that the extent to which Hong kong should be called upon contribute to the net cost of the ilitary Administration would be determined having regard to the remaining Hong Kong balances and the amount of the subsisting liabilities of the Hong long Government on re-establishment of Civil

Govt/

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