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the Island.

These measures may seem strong, but it is my duty in the anomalous situation in which I stand to see justice enforced and good order maintained, as far as in my power; and this can never be done, if the principle, on which Mr. Gillespie had acted, is admitted. The simple meaning of that principle appears to be that a man has a right to defraud his Employer and to bring an Action against him because he tells him he has done so.

Major Caine has my sanction to furnish the Parties with transcripts of these observations, should they express a wish for them.

Government House,

Hongkong 4th March 1843.

(Signed) Henry Pottinger

# RESTRICTED

Memorandum

There can be no doubt but that, speaking strictly, Mr. Davidson ought at once to pay the Bill since no such arrangement as he describes can interfere with a transaction of this nature, but considering the whole of the circumstances, and above all bearing in head that there is at this moment no formal Court of Law in the Colony, I recommend that Mr. Davidson may be allowed the time he mentions (that is two months) to obtain a reply from Singapore.

I request however the Chief Magistrate will point out to the Parties, and specially to Mr. Davidson that this arrangement is by no means a final or binding one, and that on the probable, or I may say certain

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