Confidential

2.

3.

You. 10665.

Sir,

10, Hans Mansions,

May 10th, 1913.

161

C. 0.

15094

ECR

VILDE 10 MAT 12.

I have the honcur to acknowledge receipt of Mr H.J. Read's dispatch No.15581/1912, (which reached me at a late hour last night,) on the subject of the Terminal station

of the Kowloon Canton Railway and to return its enclo-

sures as requested.

mickered

I had not previously seen Mr Clementi's letter to Mr Roes of 15/3/12 which was written on the eve of my

departure from Hongkong and which he verbally informed

me recapitulated the terms I had personally approved.

The matter was, as you are aware, concluded in some haste

owing to my impending departure, and I should have been

indueed to demur to the condition in his para 5 viii (Mr Osborne's (D.i.) I as unduly hampering the action of

Government in perpetuity in respect of the land for which

it had paid full value. In all probability what Mr Os-

borne desires will in practice be effected, but the Govern-

ment has made no corresponding stipulation as to the areas

proposed to be handed over to the Companies, and I see no

necessity for including this in the terms of the Agreement.

For the rest the conditions represent I think accurate- ly those to which I was prepared to agree.

If, however, the arrangement were to be put through

on the basis of an exchange of lands, it might have been

worth consideration whether a considerable portion of the

area edged blue on the plan (Enclosure 7 in Deap.96 of

15.3.13) immediately to the south of the Water Police

station should not be included. This area is occupied by

The Under Secretary of State,

Colonial Office.

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