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long consideration and protracted negotiations with the Colonial Office and War Office, and to abandon this scheme

would mean the postponing, for an indefinite period, of the provision of an efficient equipment for our Naval Base in

the Far East.

(c) The Kowloon site would involve an immense amount

of dredging in order to provide the requisite Man-of-War

anchorage etc., the probability being that the dredging

would have to be more or less continuous in order to maintain

the required depths. Moreover the anchorage off the

proposed site is entirely open to the West, which, from the

experience of the Typhoon in November last, is a serious

objection.

(a)

Almost the entire gain in the exchange would

accrue to the Colony and a great and unanticipated increase

of cost thrown upon the British taxpayer.

(e)

The water supply at Kowloon is, at present,

quite insufficient.

I am to return the original enclosures to the Governor's despatches as requested.

I am,

Sir.

Your obedient Servant,

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