440

4.

Further, the Army Council are unable to agree that Hong Kong is of decreasing importance as a fortress, and are indeed prepared to say that, if naval strategy in the Far East should contemplate the retention of Hong Kong as the chief naval base in these waters, the importance of Hong Kong as a fortress will certainly increase. They understand that this question is now under the consideration of His Majesty's Government.

5. In view of the foregoing, the Army Council trust that Lord Milner may see his way to continue the arrangements at present in force, and to issue a new Dormant Commission accordingly.

I am,

Sir,

Your obedient Servant.

DD Cute

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