and secure asylum for thieves and a safe temporary depôt for stolen property. It is possible also that the Chinese Government might cede it to some Foreign Power, and as there is good anchorage there, this contingency ought to be foreseen, and, as I think, prevented.

11. The Island of Laura is however the only one which at present we do not exercise all the rights of actual possession outside of any line drawn from Cape to Cape in Hong Kong, which I think should be annexed to Hong Kong and I have little doubt that the Chinese would readily assent.

12. On that point however I shall confer much with Sir Rutherford Alcock on the utility of securing an right to pursue Criminals from acknowledged shores and waters into Chinese waters. Meantime however the Law Officers are of opinion that the Islands (except Stonecutters Island) having passed with Hong Kong to the British Crown - though that opinion be qualified by the phrase "from the information before us" - is sufficiently startling to induce me without loss of time to bring the subject definitely before Your Grace.

I have the honour to be,

My Lord Duke,

Your Grace's most obedient

humble servant,

Richard Graves MacDonnell

Governor.

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