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concerned. In any event, Article 32 of the Agreement

contemplates war and rebellion as factors operating to justify

the parties in failing to fulfil the provisions and

conditions of the Agreement.

4. If Lord Passfield shares Mr. Henderson's views the

appropriate instructions will no doubt be despatched to

the Governor of Hongkong: in the meanwhile, Sir M.

Lampson is being instructed, in a telegram of which a copy

is enclosed, to defer approaching the Chinese Government

in the sense desired by Sir C. Clementi. Mr. Henderson

will be glad to learn whether Lord Passfield agrees that

these instructions should be made final.

I am,

Sir,

Your obedient Servant.

Cw. Orde

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