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shortly after I came to this Colony and I attach the papers for your perusal. There would therefore have been nothing unusual or contrary to established custom if Sir Henry May had concluded the bargain, which was in progress when I returned to the Colony from leave and directed, in my Hinute of 13.11.10, that the matter should be delayed pending reference to the Naval authorities. The reason for my action was:- (a) The extensive frontage required in the harbour. (b) The fact that the area was required for a coal depot. These were matters which affected (possibly) the Navy, but which had little direct relation to
Military defence.
(paras 6 & 7) Whether any steps should be taken to limit the number ths of Japanese residents in bhis Colony, on the grounds that they are trained soldiers and resemble the queueless Chinese, is an entirely new question which is only remotely affected by the present lease. Looking to the fact that they are our
Allies for the next ten years at any rate, and tothe
freedom of this port, and to the general Colonial policy of Great Britain, I think that any such proposal is of doubtful advisability, but should Your Excellency consider it advisable to raise it I shall be glad to examine it separately and refer it to the Secretary of State for his instructions. I do not however consider that it need delay the present negotiations. In this connection I may observe that the additional number
of employes due to the grant of this lease would I
imagine be comparatively small. A more important case on which to found a general argument of this kind would be the proposed lease to the Japanese of the iron mines in the New Territory owned by Sir P.Chater.