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3

4. In my report to the Colonial Office of the 8th October last, I strongly recommended that the town of Sham Chun should be included in the leased territory, and I stated at some length the reasons for my recommendation. I enclose a copy of that portion of my report dealing with this matter. Nothing has occurred since that report was written to modify in any way my views on this subject, and I trust that in the interests of Great Britain the British Minister at Peking will be able by diplomatic representations to secure that not only the town of Sham Chun but also the town of Shat'aukok will be included within the British boundary.

5. I am about to proceed to-day to delimit with the Chinese Commissioner the boundary agreed upon between us, which is described in the Agreement signed before Your Excellency at Government House on the 14th instant, a copy of which is enclosed. I will in due course report the result of our mission.

I have the honour to be,

Sir,

Your most obedient Servant,

His Excellency

Sir HENRY A. BLAKE, G.C.M.G.,

&C.,

&c.,

&c.

J. H. STEWART LOCKHART,

Colonial Secretary.

(Telegram to Secretary of State.)

23rd March, 1899.

Commissioners appointed by British and Chinese Governments have agreed that the Northern boundary of the New Territory shall include the River. The ques- tion of including Sham Chun and the valley was reserved for reference to Peking. Public opinion here strongly opposes non-removal of Imperial Customs Stations. I hoped to assume jurisdiction in New Territory early in April, but in deference to the request of the Chinese Government, conveyed through Her Majesty's Minister at Peking, I have agreed to take no action till April 15th. Most important to have quarters ready for Executive Staff and Police before the wet weather, which begins next month.

BLAKE.

No. 73.

SIR,

(Governor to Secretary of State.)

GOVERNMENT HOUSE, HONGKONG, 24th March, 1899.

In continuation of my despatch No. 66 of the 17th instant, I have the honour to transmit for your information copy of a further letter from Mr. STEWART LOCK- HART and of its enclosure relative to the completion of the delimitation of the Northern boundary of the new territory.

Credit is due to Mr. LOCKHART for having arranged a satisfactory provisional boundary line, but I am addressing Her Majesty's Minister at Peking with a view of obtaining an extension which will include the towns of Sham Chun aud Shat'aukok.

I have the honour to be,

Sir,

Your most obedient,

humble Servant,

HENRY A. BLAKE,

Governor, &c.

The Right Honourable

JOSEPH CHAMBERLAIN, M.P., &c.,

&c.,

&c.

Already printed. (See Sessional Paper No.)

+ Enclosure No. 1.

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