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View Expressed by Mr. Secretary Chamberlain with regard to the possession of Gap Rock, and he is prepared to instruct Her Majesty's Chargé d'Affaires at Peking to inform the Chinese Government, when announcing the withdrawal from Sham Shui Po (Sham Chure), that Gap Rock, the lighthouse which was heretofore constructed and is maintained by the Hongkong Government, will be retained. It is extremely doubtful whether the present is a favourable opportunity for pressing for a formal cession.
With reference to the indemnity question I am to observe that, as Dr. Chamberlain is aware, it has been intimated by Her Majesty's Chargé d'Affaires at Peking to the Tsungli Yamen that provided satisfaction be given to this country in other matters, Her Majesty's Government might be disposed to forego payment either in whole or in part. That the conduct of the Viceroy of Canton was unsatisfactory is true...