WHItehall 9400 Ext.

16/Abad/2900(F.1.)

THE

WAR OFFICE,

LONDON, S.W.1.

the

7

April, 1951

Dear Fairclough,

With reference to my letter of 20th March, 1951, numbered as above, about the cash accounts of the B.M. A., Hong Kong, (your reference 54126/8), you will have now heard from Hinshelwood that the sum of 45,582 1s. 4d. (which contained the item of $72.00 in dispute) has now been identified as being part of a larger sum which was paid by the Crown Agents to the War Office in March, 1949.

This puts a different complexion on the matter and strengthens the War Office claim to a further payment of $72.00 from Hong Kong.

The position of the Hong Kong B. M. A. Advance Accounts as we now see it, is as in "A" of the s tatement enclosed. In our opinion Hong Kong, having taken the $72.00 credit into the B.M. A. Advance Accounts and paid it to us, must, having effected its recovery, now make a corresponding adjustment to that account.

The position of the B.M. A. outstanding balances, as we now see it, is as in "B" of the statement enclosed and, subject to Hong Kong confirming that no further recoveries have been made in respect of the first four items of statement "B", a final settlement would be effected by Hong Kong paying

us:-

Less

$

Hong Kong & Whampoo Dock Co. (balance) Unidentifiable item credited with

$72.00

2,287.70

72.00

2,359.70

Credit due in respect of over payment

for cash handed over

.48

$2,359.22

Alternatively, if Hong Kong will identify the item to which the $72.00 was erroneously credited and will confirm that the balance of $72.00 on that item is irrecoverable, we will take steps to write-off that sum and accept final settlement at $2,287.22.

Yours sincerely,

A.J. Fairclough, Esq.,

Colonial Office,

The Church House,

Great Smith Street, London, S. W. 1.

Aw

Stemmen

5

58

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