14

in principle the transfer of the areas in

question (which do not include the areas

hatched red in the enclosed plan) on the

terms set out in Sir Thomas Southorn's

despatch.

It is observed that these terms-

de not appear

conflict with those

mentioned in your letter under reference.

4.

As regards the point raised in

the

the final paragraph of your letter under uply

rearks that he is unable to

agru Mr. MacDonald te-not prepared to anticipate

in this case the decision on the general

hz and/ca

question and cannot invite the Hong Kong

Government to agree to any other basis

of negotiation than that that decision,

matter of the when reached, should govern the terms-on

the

now in question)

which buildings on eveh lands would be

taken over by the H.K...........Government if, and

when, the land is vacated by the military

authorities.

5. I am further to invite especial

reference to Sir William Peel's despatch

No:

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