19

CONFIDENTIAL

31 August

192 7

30176/27

Sir,

To Gov.3rd Aug.

I am directed to acknowledge the receipt of your letter (No.N 2457/27) of the 22nd of August and to

request you to inform Their Lordships that the Secretary of State fully shares their regret that it

has been necessary on financial grounds to defer

consideration of the scheme for the formation of a

Royal Naval Volunteer Reserve Force at Hong Kong.

2. As will be seen from the enclosed copy of

a confidential despatch which has been addressed to the Governor the possibility of reviving the scheme has not been lost sight of, and on receipt of the Governor's reply to paragraph 3 of that despatch a further

communication will be addressed to you.

3.

With reference to paragraph 3 of your letter 1 am directed to state that a copy of this correspondence

THE SECRETARY,

ADMIRALTY.

is

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