Mr. GRINDLE

See also 3615.

The Dept. and Mr. Bushe also are inclined

to the view that the Govt. of H.K. are treating

Mr. Williams badly. Whether they are acting

within their legal rights is questionable.

We have suggested to 0.A.G. a way of proceeding

which may legally regularize their position,

but there will still be the question of the merits.

I think we should send the gist of these:

representations to 0.A.G. by tel., say that

S. of S. considers they contain a good deal of

force; and ask him to place them fully before:

the Leg. Council when the further proceedings

in the Council take: place.

Are

20.1.19

And ack. both letters, say we are in further

tel. communication with the 0.A.3., and

promise a further reply.

G.8.20.1.19

11, The Drive,

Gelder's Green. N.T.4.

525

9th, January 1919.

CO

2214

RECE (REG 10 JAN 19

Hong Kong Sauth.

The Under Secretary of State,

Colonial Office.

sir,

I have the honour to acknowledge, with thanks, receipt

of your letter 63155/1918. of the 7th,

instant.

Whilst I note with appreciation you have telegraphed to the Governor of Hong Kong, yet it would appear from your letter that you ask what course the Colonial Government new propose to adept with regard to the Rong Kong South Development Scheme, whereas my suggestion was that it should be stated exactly what further

information is required.

It has accurred to me that the telegram might be misconstrued to mean that you have given the Colonial Government

I cannot think, however, that discretionary powers in the matter. this is your intention for the whole position is se clear that I submit there is no question outstanding save with regard te finance.

After prolonged

May I remind you of the facts.? negotiations the Colonial Government and the Promoters came to an arrangement granting the Premeters a concession, in the form of an

This was Agreement, for the development of Hong Kong South. submitted to the Colonial Office and approved, subject to its being

The Legislative Council approved passed by the Legislative Council,

and Colonial Office confirmation was received in August 1914.

The good faith of all parties was apparent and the formation of a Company was to be preceeded with as seen as this confirmation was given. War brake out, however, and prevented this being done for reasons known to everybody in England but apparently

TAM

¦

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