enclosed, will be sent

to the Governor of Hong

Kong,

the facts of

subject to an objection on this Lordship. I am advised

that Mr. Chamberlain, while not wishing

is not prepared to

accept that count

by the statements

of all

of the facts connected with the occupation of

Sham Chun which were made

in your

acknowledgment. It would be better under

correspondence

on the subject.

For

Chamberlain

The occupation was

at any rate

its continuance

beyond a certain point

mainly dictated

by considerations of

Imperial interests and that the bulk of

the cost of that

occupation should

therefore be borne by Imperial funds.

3. Sir

Henry

Blake

will

accordingly be requested to furnish a full

statement of the expenditure incurred in

this connection, and when it is received a

further representation

will be addressed to

Lord Salisbury upon

the subject. Mr.

Chamberlain trusts that Lord Salisbury

will then see

his

way to inviting the L.C. to pay an

adequate proportion of

the cost.

4. With

regard

to the question of the use of Kaf Rock,

I am to observe that

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