For my reply dated 8 January 1891 to War Office communication.

V

Hongkong, 2 of 20th November 1890. I have now the honour to report that after much correspondence and negotiation with the Colonial Government, I have at last obtained a conditional undertaking which I trust may form the basis of a satisfactory settlement of this matter.

As shown in copies of my letter to His Excellency dated 7th February 1891 and His Excellency's reply dated 16th March, 1891, marked A and B respectively, together with the illustrative plan enclosed therein, I strongly recommend that the line of defence near the frontier may now be definitely decided upon, the plans and estimate for which, as called for by your letter of 10th July 1889, 3782, are in course of preparation and will be forwarded shortly.

3. Having dealt with this matter in a separate letter, I do not wish to dwell upon the action of the Colonial Government, which has rendered the change necessary, further than is required to show that the Military authorities have not been to blame in the matter, and also to explain the references in the map of the Kowloon lands now rendered.

4. With this view, I would mention that (a) the leases shown in the map granted "subject to demolition rights" are those in regard to the granting of which the Colonial Government for...

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