of the troops outside the frontier and its satisfaction will justify their withdrawal.

I am therefore to suggest that a money compensation should be preferred against the Chinese government and that the Governor of Hong Kong should be consulted as to what sum should be demanded, a reasonable claim.

Corbrand

If the views expressed in this letter appear to themselves to Lord Salisbury I am to ask for his lordship's approval of the enclosed draft of a telegram to Sir H. Blake, and to suggest that a communication in the sense of this letter should be made to the Chinese government.

Draft telegram:

RAFT for approval.

MINUTE.

To W. Hamilton & Mr. Antrobus. J. B. Cox. Mr. Lucas. Mr. Graham, 3 June. Sir E. Wingfield. 3 June. Earl of Selborne. Mr. Chamberlain.

PRINTED FOR USE OF EASTERN DEPARTMENT, COLONIAL OFFICE.

28 May and Your telegrams 30 May and 3 June. Following is the decision of ... fort. Boundary already delimited will be future boundary, but Sham Chun will be occupied until China pays indemnity.

Copy to $5.0.

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