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7.

This question is not unconnected with the

larger question of the future permanent accommodation

on the mainland of the greater portion of the Garrison

of Hong Kong. This matter is already engaging the

attention of the War Office and formed the subject

of a discussion with Major General Sandilands and

his advisers on 22nd December last. The views of

the War Office are however not sufficiently defined

to enable me to address you with advantage at the

present stage and this despatch is therefore confined

to the question of the terms on which the occupation

of the Sham Shui Po area is to be continued.

8.

A copy of this despatch is being sent to

the General Officer Commanding the British Troops

in China.

I have the honour to be,

Sir,

Your most obedient, humble servant,

h the

Governor, &c.

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