395
and
I trust that sender will agree to the proposed arrangement.
Much difficulty will be experienced in arriving at a decision which will be satisfactory to all the interests concerned.
There is a Memorandum on the appropriation of the Kowloon Peninsula.
In considering the appropriation of the newly-acquired Kowloon Peninsula, it should be borne in mind that while every reasonable consideration ought to be given to the commercial prospects of the colony, the question is one of imperial, and not only of colonial, interest: The colony is defended by a garrison, the cost to the Home Government is materially increased by the sickness and mortality caused by the unhealthy situation of the Barracks, and insufficient cubic space afforded.