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Government an assurance that the concession of the said line should become its property; but I beg to respectfully point out that I understand that the concession has practically been at the disposal of the group referred to since April 1898 and that I have strong reasons for stating that it does not intend to immediately proceed with the financing and construction of the line.

It may be hardly necessary for me to point out that energetic steps are being taken by a section of the American China Development Company group to obtain an outlet for the Hankau Canton railway, whether it be at Macao through the intermediary of Portuguese concessionaires or otherwise and should any of these steps result successfully irreparable harm will be done to our Colony of Hongkong.

(signed)

I am &c.,

Edmund Davis.

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