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we should have to give good reasons to Hong Kong why this was so. We also suggested that the interim settlement of £10,000 proposed for the War Supplies Board claim could safely be raised to £12,500. As a result of this letter Mr. Radford went over to the War Office and with Major Jefferies there went through their papers regarding Item 3. The result was to discover some evidence that Hong Kong (besides preparing etc. the wagons in question for shipment) did supply at least some deficient material. The War Office contention in (47) on the 1948 file is that all the deficient material was supplied by India, not Hong Kong).

3. In (1) the War Office now agree to raise the interim offer on the War Supplies Board claim to £12,500 and supply copies of the evidence relating to Item 3 discovered by Mr. Radford.

do not however proceed from that to the obvious conclusion drawn in paragraph 3 of my proposed draft to Colonel Seymour (draft A) and

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