Hongkong, 4th July, 1904.

Sir,

With reference to your Despatch No. 160 of the 20th May, and to my telegram of the 22nd June, I have the honour to inform you that this Government cannot see its way to accept without qualification the compromise as to the boundary between the War Department Property and the Praya East Reclamation.

2. The compromise is in itself not considered to be a fair one and it would be almost out of the question to accept it unless, as telegraphed to you, the boundary line is taken to be the coping level instead of the toe of the rubble slope of the Reclamation.

3. I trust that the Imperial Departments will be disposed to treat this Government in the same liberal spirit in which they have been treated in similar circumstances.

I have the honour to be,

Sir,

Your most obedient

Humble servant,

[Signature]

Officer Administering the Government.

THE RIGHT HONOURABLE

ALFRED LYTTELTON, K.C., M.P.,


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