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The Camp at Sheung Po has now been formed since the beginning of June, and during that time, as Your Excellency is aware, there has been practically no trouble, or certainly none of sufficient importance to implicate the Home Government. This result has been largely due to the tact and discretion exercised by the Officer in Command: Major Prendergast R.E. I have before this brought this Officer's name to the notice of Your Excellency, but now that the Camp is finally closed it is only right to call attention to the difficulties of the situation, as they were owing to our occupation of that part of the country being only temporary, and not permanent.
When we first occupied the Sham Chum valley, and our occupation was looked upon as permanent by the inhabitants, it was welcomed by them. But as soon as it leaked out, as it did, that we were only there for a time, then a change occurred, and those who had been first to welcome us and to assist us felt that their position would be difficult on our departure. So signs of disturbance were soon apparent, not of a very pronounced type, but sufficient to show the spirit which animated the people. These were put down
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