|Letter written from the Colonial Office, dated 30 September and marked 'Confidential'. Chamberlain, having considered the Treasury's memorandum and Hicks-Beach's observations, sends his views on financial policy. He expresses his respect for Hicks-Beach [1837-1916, politician and first Earl St Aldwyn] and writes that there are many points on which he agrees with him. Chamberlain agrees that a time will come when the public no longer supports war taxation and wants reductions in army and naval expenditure, however he argues that that time has not come yet. Chamberlain justifies the need for continued expenditure even after the war is over; a view which is supported by naval and military advisors. He points out that credit will be received from the repayment of debts by the Transvaal. He writes that it is too soon to pursue a 'policy of economy' and warns that any government or minister who does so will endanger their position. In a postscript he adds that he saw Hardwick in London, and reports that he was 'terribly over-strained'.