808

1.

2 17

1

GIGANT

i

COPY.

Enclosure 2.

(No. 2)

309

No.1209/1912.

gir,

RECO

C.O.

16671

Rca 7 MAY 14

Colonial Secretary's Office,

Hongkong, 28th. February, 1914.

I am directed to inform you that His Excellency the Governor has had under consideration your letter of the 19th. November relative to the terms imposed by this Government in respect of the lease of an area which it is desired to take up for

the purposes of a Portuguese Reservation.

2. His Excellency is in sympathy with the objects of the Scheme, and he cannot agree with your contention that this

Government has adopted a hostile attitude towards it. After full

consideration of the points raised in your letter under reply “hi he is prepared to recommend the lease to the Secretary of State

for the Colonies subject to the modifications shown in the revised draft regulations which are enclosed herewith. His Excellency

hopes that you will be able to see your way to accept the terms

now proposed.

3. With regard to the concluding paragraph of your letter, as it was hoped that a satisfactory arrangement might

still be arrived at, the copies of documents and correspondence

which have passed between this Government and yourself have not

been forwarded to the Secretary of State pending this further

reference to you.

I have etc..

(Sd.) Claud Severn,

Colonial Secretary.

C. Liontague Ede, Esq.

P.S. The Secretary of State has decided that with regard

to compensation for tenants improvements at the expiration of leases, the principle that the whole value of tenants improvements will not be confiscat. -ed at the end of a lease shall apply to reneable Leases in the Colony.

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