2.

3/

attached.

B. Consul to arrange with individual crown lessces for endorsement of crown lease in terms of draft deed of assignment and release, repeated to you in Peking telegra

No.174 of last year.

C.

Chinese deeds to be exchanged for crown leases duly endorsed which will be retained in the Consulate

archives.

D. Exchange of notes between the Commissioner for Foreign Affairs and His Majesty's Consul recording can- cellation by mutual consent of the respective governments of deed of lease of February 23rd 1861.

E. Repeal of King's regulation number 2 of 1925

as from date of cancellation of above deed.

5. I request your approval on the understanding

that stages

D and E will be preceded or accompanied by

an agreement between His Majesty's Government and the National government as in the case of Kiuking transferring administration of concession, providing for compensation of local British losses arising from looting and safe- guarding existing vested interests such as mooring rights. I await further details about these compensation claims and vested interests before requesting Mr. Newton to discuss such an arrangement with Wang.

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