CO129-502-1 Singapore naval base- payment of Hong Kong's contribution 7-1-1927 - 27-9-1927 — Page 14

4

1.3

5. if this Government, without comment,

accepts the decision to place this interest to Revenue,

the fact would probably become known locally, the

amount involved would possibly be exagerrated, and in

all probability the old controversy be revived.

6. I regret writing at such length, but

I would submit, with all deference, that the matter

should be referred to the Secretary of State. I would

also humbly suggest, for your consideration, that

in the meantime, the Colonial Treasurer should be

directed to place the sum of money under review to a

Suspense Account "Admiralty".

I have the honour to be,

Sir,

Your obedient servant,

(Sd). H. R. Phelips,

Auditor.