+

2

180.

C.

266

time and the financial condition of Japan may for some years make it her interest to keep on good terms with Great Britain, but there is a term to both these safe- guards and should relations ever become strained between the two nations the presence in this Colony of large

Japanese establishments would I think inevitably lead

to complications of an undesirable kind.

I understand that a still more dangerous custom exists regarding the sale of sites owned by private individuale to any purchaser.

In para. 14,b.of His Excellency the Governor's Secret. despatch No. 6 of February, 1911 to the Secretary of State for the Colonies the following sentence occurs "with reference to the site of the Hongkong Flour Mills

had the Company (the Mitsui Bussan Kaisha) desired this

site they would no doubt have bought it without consulting the Government, from the Hongkong Flour Mills". The site

referred to above is close to our 9.2" Battery at the

East entrance to the harbour.

There is at present I have ascertained

in course of the present correspondence another case of this sort pending namely the sale of some iron mines

in dangerous proximity to the rear of our battery of

heavy guns on the Northern side of the Eastern entrance

of the harbour, by Sir Paul Chater to the Mitsui Bussan

Kaisha.

.9000 Ai od madlob

His Excellency the Governor has promised

to place me in possession of such information as he has

at his disposal in this matter, and I hope to be in a

position to report more fully by next British packet.

I have the honour to be,

Sir,

Your obedient Servant,

(sd) 0.A.Anderson. Major General.

Commanding the Troops. S.China.

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