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leave for the frontier by special train at 12.30 p.m. the same day accompanied by about thirty of the Hong Kong Police under Mr. W. G. Gerrard, Assistant Superintendent of Police, by Mr. E. H. Williams, Acting District Officer, North, and by Mr. A. E. Wood, a senior member of the Cadet service, who possesses an exceptional knowledge of Chinese and of the New Territories. I also arranged with Commodore A. J. B. Stirling, C.B., for a Naval seaplane to visit the frontier at the spot and to make a demonstration. The

troops and the seaplane went off as arranged, and I enclose copies of the orders issued by the Officer Commanding the

Troops, and of the reports subsequently received from Mr.

A. E. Wood and the Captain Superintendent of Police.

It will be seen from the reports that the

captured police, what the strike pickets were on the point

of sending away from Sham Chun by train, were restored to

Mr. Wood, and that the return of the arms and of the motor

boat was promised. I have no reason to suppose that the

promise will not be kept. The arms, except one revolver,

have already been restored and attempts to refloat the

motor boat are now in progress.

3.

I had, meanwhile, telegraphed to the Consul- General, Canton, protesting against the seizure of the motor boat and crew and keeping him informed of the

5 position. I enclose copies of these telegrams and of his

reply which I received on the evening of the 21st June.

4.

It so happened that the Chinese cruiser "Hai Yung" with Rear-Admiral C. L. Ch'ên on board was in Hong Kong at the moment, having come to visit the new Meteorological Station at Pratas Island, and having been detained here by bad weather. I endeavoured to enlist the assistance of the Chinese Rear-Admiral in my efforts to recover the men and property who had been seized.

Rear-

Admiral

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