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of this Steamship Company would I consider be a source

of deep anxiety and danger to the defence. It would

also be a menace to the safety of our dockyards, water

supplies, cables, electric installations and all the

other arteries of the life and defence of the Colony.

10.

The proposed site is it is true

commanded at close range by the hill on which the old

East battery stood but a hill without men to put on it

is no safeguard and the weakness of the garrison must

be borne in mid mind when considering the matter.

11.

The accumulation of explosives by

Japanese would be much facilitated by the existence of

such an establishment in the Colony.

12.

No other foreign nation has such

an establishment here and yet no other foreign nation

is in a position to be such a menace to the security

pf the Colony as Japan is.

13.

In peace time the large additional

number of Japanese residents would greatly facilitate

the obtaining by the Japanese General Staff of a knowledge

of all the vunerable points of the place.

14.

For the above reasons I suggest to

Your Excellency that definite action in the matter should

be further delayed to enable me to submit a report of

the circumstances to the Army Council and to receive a

reply from them so that I may be able to place their

viewe before you.

15.

I should be glad to know whether

you concur and also whether the facts stated in my opening

paragraph are correct.

16.

In connection with para. 13. above

I enclose for Your Excellency's perusal two copies of

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