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the areas to be exchanged" used in reference to exchange No.3

are an incorrect summary of the facts. If you will refer to

the terms of the third paragraph of enclosure 2 in my Despatch No. 393 of 28th August, 1900, you will see that the

words used are "An exchange was also discussed and

'it was agreed to prepare surveys of the lands in question in

order to facilitate the further consideration of the subject".

This being so, I need not controvert the

5.

statement that the Colonial Government had withdrawn from the

arrangement as propounded by the General Officer Commanding.

But it is expedient to inform you that on the 23rd August,

1900, I minuted to the Acting Colonial Secretary as follows.-

"Exchange proposed in (1) and (2) approved".

This shows conclusively what view I took

of the Joint Report at the time, and that I considered that

paragraph 3 of that Report decided nothing and did not constitute a binding agreement.

6.

As regards paragraph 2 of the General

Officer Commanding's letter, I agree that the phrase Military

Reserve Lands has never been accurately defined; in fact, it has never been defined. In any event, I do not understand why

if "Military Reserve Lands" had been or were to be defined, a

special definition would be required for the phrase "Military

Reserve at Kowloon". Supposing even that Military Reserve, acquired under special circumstances, required special definition, the question arises whether such land thus acquired would remain Military Reserve when the special circumstances had passed away, under which it was acquired. Military Reserve,

wherever

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