instructions may be issued for the necessary legal

document to be prepared.

I am

Sir,

COPY.

Your' obedient Servant,

(sd.) Wm.LEITCH,

4

160

Shanghai, 6th February,

22.

Mr. Reavel1, H.M.0.W., London,

With reference to your telegram of 2nd instant.

Report forwarded on January 27th, position is LS

follows:

Government of Hong Kong is desirous of sub-

leasing Yamen, Canton, from Office of Works for a period

of twenty years at the rent of 350 dollars per annum

for purposes of erecting buildings for Cadets. No

objection, provided that no future liability of any,

kind in respect of buildings erected by Goverment

of Hong Kong is accepted by Office of Works. H.M,Minister

at Peking and Consul-General at Canton concur.

Government of Hong Kong desire clause to be inserted

in Lease to the effect that, in the event of premises

being again required by Imperial Government before

expiration of Lease, the Lessors should pay compensation

for the buildings to the Lessees, No probability of

this contingency arising and it is considered

undesirable to commit the Office of Works by any such

undertaking. For political reasons the Consul-General

considers it undesirable to relinquish Crown rights over

the

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