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Mr. Lau Cheuk Pau has been aware of the

position for over two weeks but has so far refused to

hand over the office to Mr. C. Y. Chen. Er. C. Y. Chen

has already today officially served Mr. Lau Cheuk Pau with the document officially dismissing him.

We understand that there is some arrangement between the Hong Kong Government and the Peking Government whereby the Hong Kong Government is entitled to approve or disapprove of any new appointment to the office of Manager of the Administration and we are given to understand that Mr. C. Y. Chen's appointment has been before you for a considerable period.

We shall be much obliged if you will kindly inform us that Mr. C. Y. Chen' appointment has your approval so that steps can be taken for Mr. C, Y. Chen to take over the managership without further delay.

We have, etc.

(Sd). Deacons.

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