COPY:

Enclosure No. 2.

106

Colonial Secretary's Office,

HONG KONG

27th January, 1931.

Sir,

I am directed to forward for your

information draft "Transition Agreement" drawn

up in view of the possibility that some such

arrangement as it defines will be required as

a preliminary to the adoption of the main

"Merger Agreement".

2.

The whole document must be considered

as tentative and provisional, and to go no

further than an indication of the lines on which

this Government as at present advised will be

prepared to proceed; but entire freedom of

action in the future is still reserved.

I am, Sir

Your obedient servant,

(Sd). E.R. Hallifax.

Colonial Secretary.

Air Commodore L.F. Blandy, C.B., D.S.0.

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