COPY (originst

on 54488/50 at

= (6))

17

15A

Claims 68274

Dear East,

2nd February, 1950

May I refer to Hall's letter to you of the 30th Ultimo and enclosure, of which I have received a copy.

It is indeed unfortunate that it has not been possible to settle the outstanding claims by means of the proposals contained in your letter of the 7th December, 1949 to Hall.

In the circumstances we assume that settlement with the new Government will probably be arranged by a formal notificatio to them of the position as set out in your letter to Hall, coupled with an offer to close the matter without financial adjustment either way. This would then result in a deficit for apportionment between the War Office and this Department on the basis of our respective interests and would mean that we should, in due course, receive reimbursement from you in the sum of £20,588.19. 6d. based on the following formula.

E.C.G.D.

TOTAL

£22.000

£185,847

= £198,583. 13. 2d.

X

= £20,588. 19. 6d.

I should be glad to have you confirmation for record purposes that something on these lines is what you have in mind now that the specific claim on the late Government will need to be abandoned, and, for the amount of the difference involved in the two possible solutions, is scarcely worthy of resuscitation with the new Government.

Equally I should be grateful if it could be arranged for payment to be made to the Department on these lines before the close of the present financial year.

I am copying this letter to Hall (Colonial office), Atherton (Treasury) and Coates (Foreign Office).

Yours sincerely,

G. EAST, ESQ.,

WAR OFFICE,

WHITEHALL,

LONDON, S. W. 1.

(Sgd.) F. TAYLOR.

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