!

11, The Drive,

474

Gelder's Green. N.W.4.

The Under Secretary of State,

C O 2nd, August 1918. 37498

Colonial Office,

Lenden.S.W.1.

REC

[Rent AUG 18]

30

Ca.

Sir,

Hong Kong South.

I have to acknowledge receipt of your letter 35515/1918.

of the first instant and to thank you for the action taken by you,

I regret the distance to Hong Kong prevents the whole matter being discussed by me with His Excellency The Gevarner,

personally, particularly as the Seliciters in Hong Kong have not been

present at the conferences in England otherwise they would be able

to give The Governor the detailed history of the negotiations.

As I am familiar with the details, both in Hong Kong and England, I do not hesitate to say that I would strongly advocate,

apart from any question of War conditions, placing the formation

of the new Company, and the Contract for the Light Railway, in the

hands of a Britisk firm of undoubted standing and repute and ene

which has been successful in developing similar undertakings in a

satisfactory manner. This is in entire accordance with the new

spirit of Reconstruction and the principle of Empire development

by Hame firms.

I submit this course has the fellowing advantages:-

(a). It ensures the Company being formed on that sound commercial

basis for which the best London firms are noted.

(b). It ensures the scheme being carried out on the best engineering

lines and advantage being taken of the firm experience of

similar and larger undertakings in various parts of the World.

(c). It ensures that once the matter is taken in hand it will be

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