See Nota
below
Mr. Mayle told me that he did not feel able to agree to X in Mr. Harding's minute above, and asked me, therefore, to send a telegram explaining the position to the Governor and, with reference to 13, asking whether he would agree that this preliminary work the cost of which is estimated at $5,000 should be covered by a C.D. and W. grant.
In the meanwhile, however, I have attached Mr. Woodward's note at 17, from which it will be seen that he gives information which suggests that this expenditure can legitimately be regarded as for rehabilitation. I therefore took it to Mr. James in the Treasury yesterday afternoon, and he has now agreed that the £5,000 may be debited to Hong Kong Government funds. He made it clear that, as regards t is small sum, it could not later be transferred to a C.D. and V. grant, but that, of course, this would not prejudice consideration of the scheme as a whole (which, I think, is estimated as likely to cost about 2 million pounds), being considered as appropriate for C.D. and W. assistance.
If this is agreed, therefore, within the Office, we can now authorise the Crown Agents to make the necessary arrangements with Messrs. Le Grand, Sutcliffe and Gell.
Mr. Woodward should call upon me again to-day, explaining that the machinery has in fact been ordered provisionally from Ministry of Supply surplus equipment but they had threatened to dispose of it if a confirma- tion were not forthcoming in the very near future.
1
Draft telegram to the Governor; draft letter to the Crown Agents, and draft letter to Mr. Woodward herewith.
A.
N.B
23rd August, 1946.
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