will give sufficient ground for every purpose of policy, utility and defence

The town and Fort

of Kowloong will not be interfered with.

I would certainly include Stone-cutter's Island which

is worthless except as a Harbor Boundary, and

Buildings

on

this should

be prohibited as

tending

only to complicate our

position and invite us to

extend yet further. And finally, on the subject of indemnity to

the Chinese Government for

the Surrender of this land I should say, considering that I have shown the

ground

not only worthless

to them, but an incumbrance

and a dangerous one,

that

it would be sufficient to tender the smallest sum

that would convert a

nominal into

a legal consideration.

Colonial Secretary.

Colonial Secretary's Office, Victoria, Hongkong.

6th June, 1859.

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