T. No.: WHltehall 1234.
FOR DI
SCHEME
MEN
Your reference..
Treasury Reference.
pense
76
8.
TREASURY CHAMBERS,
GREAT GEORGE STREET,
LONDON, S.W.1.
24th March, 1950
(5)
Dear Palmer,
་
Flease refer to Bourdillon's letter to Clough of the 21st March. Clough has given me discretion to negotiate with you direct as far as concerns the approval of the draft saving-gram which was enclosed in that letter.
I would suggest the following amendments to paragraph 5, 6 and 7, plus the addition of a new paragraph 8, which as you will see are not very drastic and merely have the effect of stiffening up the draft at points where the Treasury might feel that questions of principle were implicitly being conceded questions which are still outstanding between Treasury and the Colonial Office following Clough's letter to Higham of the 4th 55413/1/50 January, 1950.
Wa
5
5.
For convenience I give the amendment versions of paragraphs 8 complete:-
"In the light of further consideration which has since been given to this problem I now feel, however, that the proceeds of sale during the period of British Military Administration must be regarded as reducing the cost of that administration since the latter was functioning in place of the Civil Governments; and that as the net cost of the B..A. has been borne as a final charge on United Kingdom funds, His Majesty's Government has in this manner discharged to Hong Kong its obligation to Hong Kong in respect of its share of £181,000 related the B... period.
H. Palmer Esq.,
Colonial Office,
/6. As
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