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certainly an increase of sickness in the Garrison for a time, the Secretary of State for War would gladly learn that the Scheme was abandoned altogether; but in spite of this Mr Secretary Stanhope is prepared to consent - with Treasury sanction on the basis mentioned, arrangement - as he is aware of the great importance which the Colonial Government attach to the Scheme.

The Secretary of State for War is also aware of the technical difficulties as to the sale of property in Hong Kong; but he has not found that those difficulties have prevented the War Department acquiring property in the open market, though very high prices were paid.

Mr Secretary Stanhope confidently trusts that the Governor will afford such assistance as may be necessary to enable the

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