Cession of the place being obtained from the Chinese Government. Pending this matter for your perusal, I beg to furnish you with some information; as well as to express my views on the subject of it previously canvassed by Mr. Cleverly, the Surveyor General.
I entirely concur with Mr. Cleverly's view that acquiescence in Admiral Sir Michael Seymour's demands would render the acquisition of the Peninsula altogether valueless to this Colony.
2. Admiral Sir Michael Seymour recommends that a certain portion of the Peninsula, marked by him on a Map which accompanies his despatch to the Secretary of State for the Colonies, dated 22 May 1860, should be reserved for Naval and Military purposes; and that the remainder should be left unoccupied for the accommodation of Troops in the event of future wars with China. I think the area proposed to be reserved is unnecessarily large; and I can scarcely believe that Her Majesty's Government will be prepared to sanction the retention of the whole Peninsula as a Military Settlement, to the injury of this Colony, and at a heavy expense to the Imperial Exchequer, merely for the possible contingency.
Page 114