M Elliot
                     I thought it advisable to investigate this claim before we
                     proferred it to the Governor, and 
M Pennell has been so obliging
                     as to supply me with a mem which I have gone over carefully.
                     The

 result is that the claim may be reduced to a small compass.
                     
 
                  
                  
                     £155.9.4 of said claim has been paid & the Adm
                     informed thereof on the 18 Jan last.
                     
                  
                  
                     £14.13.4 has also been paid by the 
Crown Agents; but as we have not
                     formally informed the Adm of this fact it remains that we should do
                     so: and we can make mention of it in the letter wh. will have to be
                     written in my division. Further we have told the C. Agents to pay
                     £69.18.2, & should now desire them to pay the percentage
                     money—£3.9.8—due on the supply to
                     the Colony of 
B.C. together with £1.11.3 for supplies from the 
Sutlej.
                     
                     Therefore we have to explain to the Adm where
                     payments have been made & tell them that the C. Agents
                     have been directed to pay the residue amounting to
                     
                     
                     
                     
                        
                           |  | 3. 9. 8 | 
                        
                        
                           |  | 1.11 .3 | 
                        
                        
                           | £ | 5. 0.11 | 
                        
                     and instruct the Agents and the 
Gov ac
c.
                      
               
                
                  
                  
                     M Blackwood
                     This letter from the 
Admiralty is incorrect and misleading—the facts
                     of the case are these. On the 
4 of July 1865 the 
Admiralty sent
                     in a claim for stores supplied to various Colonies amounting to
                     £243.10.6. This was composed of three sums as under
                     
                     
                     
                     
                     
                     Items 1 & 2 have actually been paid to the 
Admiralty, and of the
                     payment of the

 larger of these two (£155.9.4) they have been informed.
                     (See letter to Adm 
18 Jan/66 Gov/373/65 New Zealand). The
                     payment of the 
Hong Kong item £14.13.4 has I learn from 
M
                        Sargeaunt been made by the Agents but the 
Admiralty have not been
                     informed of it's actual payment by this office—perhaps they should
                     now be told.
                     
                     
                     
                     
                      
                  
                  
                     The history of the 
British Columbia item to which the enclosure
                     to the present 
Admiralty letter refers is

 the claim of £73.7.10 made
                     as above was supposed here to belong to the 
Foreign Office, it was
                     withdrawn by the 
Admiralty accordingly—and was made on the Foreign
                     Office—but as a percentage is charged on Colonial Supplies which is
                     not in regard to those of other Departments—the percentage amounting
                     to £3.9.8 was deducted when the claim was made on the 
F.O.—i.e. the
                     claim made on that Department was £69.18.2.

 The 
Foreign Office
                     repudiated it and it was renewed on this Department but the 
Admiralty
                     made an omission in not then adding on the percentage again.
                     Consequently they made the claim £69.18.2 whereas it ought to have
                     been renewed as it originally stood £73.7.10.
                     
                     The Agents have been told to pay £69.18.2 and the 
Admiralty have
                     been informed that they have been desired to do so.
                     
                     
                     
                        
                           
                           This is a mistake. We have not informed the 
Admiralty.
                           
 
                     
                     It now remains to authorize the Agents to pay for the balance or
                     percentage
                     
                     
                     
                     
                        
                           |  | 73. 7.10 | 
                        
                        
                           |  | 69.18. 2 | 
                        
                        
                           | £ | 3. 9. 8 | 
                        
                     and the 
Gov to pay
the
 the Agents.
                     
                     By the foregoing it will be seen that the 
Admiralty now make a
                     claim as outstanding of £243.10.6 which they had made in 
July
                        /65—that they have already been informed of the actual payment of
                     £155.9.4—that £14.13.4 has also actually been paid, and that
                     instructions have been given of which the 
Admiralty have been
                     informed for the payment of the £69.18.2. All that remains
now
 now
                     to be authorized to be paid to them is £3.9.8 on account of the
                     
Bentinck Arm Expedition, together with the fresh claim which they make
                     for £1.11.3 for supplies from 
H.M.S. Sutlej in 
July 1864.