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No. 5.

February 12, 1913.

453

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enclosed)

Sir,

I have the honour to report that the contents of

your telegram No. 6 of February 5th. were duly communicated to

the Managing Directors of the Green Island Cement Company, and

that the day before yesterday they held a meeting to consider

the same.

As in previous correspondence no specific mention

occurs of guarantees with regard to future supplies of limestone,

after the confiscated stone shall have been released and exist-

-ing contracts fulfilled, these gentlemen have throughout enter-

-tained apprehensions that this very important point had been

overlooked.

You will, however, remember that at the meeting,

which you had with the Wai Chiao Pu last autumn, when I was present, this question was specifically discussed and you were informed by the President of the Board that so long as the pro- -visions of the Mining Regulations were observed, no restrictions

would be placed on export nor fictitious opposition raised to the issue of quarrying permits. The subject was also again brought up

at the recent interview I had with the Tu Tu.

On the strength of assurances to this effect the

Managing Directors have accordingly now formulated the conditions

on which they will consent to waive their claim, and these I have embodied in a Memorandum to the Tu Tu, copy of which is enclosed.

In view of the unsatisfactory way in which in-

-terpretation was carried on on the last occasion on which I saw

the Tu Tu, I have decided to depart from your instructions and have deemed it preferable to present to him a statement in writing, s0 that he may be able to grasp the conditions in their entirety and that no loophole may be left for ambiguity or misunderstanding.

The adoption of this course will further enable him

to talk over the matter freely and at his leisure with the Indus-

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