CONFIDENTIAL.

Hongkong.

My Lord,

27915

C 0383 41032

RECR

Reef 7 NOV 06

Government House,

Hongkong, 9th October, 1906.

With reference to the 3rd and 6th paragraphs of Your Lordship's Confidential Despatch of the 11th August, 1906, on the subject of the loss of a sum of $2,903.06 through the dishonesty of a Chinese Shroff employed in the New Territories, I have the honour to transmit a copy of a letter from Mr. L. A. M. Johnston, explaining his recommendation of Ip Wai Lam for appointment.

2. I will, on return from the extended leave granted him by Your Lordship, call on Mr. S. B. C. Ross to furnish an explanation of the lack of supervision to which that part of the loss is due which occurred while he was Collector in the New Territories.

3. I am considering the question raised in the final paragraph of the Despatch in which it is stated that it would appear to Your Lordship undesirable

THE RIGHT HONOURABLE

THE EARL OF ELGIN, K.G.,

800...

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