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P.S.

No. 1209/1912.

I

21397

TREAD

COLONIAL SECRETARY S

HONGKONG.

28th February, 1914.

74

sir,

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 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 terme 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.

C. Montague Ede, Esq.

I am, Sir,

Your obedient servant,

(Signed) Claud Severn.

Colonial Secretary.

The Secretary of State has decided that with regard to compense- tion for tenants' improvements at the expiration of leases, the principle that the whole value of tenants' improvements will not be confiscated at the end of a lease shall apply to renewable Leases in the Colony.

(Signed) C.3.

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