ENCLOSURE NO.1.
C.R.C.C.X/14093/AQ
CONFIDENTIAL
Headquarters,
China Command,
HONG KON
19th March, 1937.
14
Sir,
I
With reference to Your Excellency's letter of the
15th inst., No. 13/2892/27c, regarding our provisional
agreement on the subject of outstanding financial matters,
I have the honour to state that I have no comment to offer
on the draft of the despatch which Your Excellency proposes
to send to the Secretary of State for the Colonies.
confirm that paragraph 2 of the draft despatch states our
agreement in regard to the claim for rent for Shamshuipo.
2.
In view of the misunderstanding at the Colonial
Office in regard to the anti-malarial measures at the Kau
Lung Tsai site, I think it may be helpful if I set forth in
this letter my view of the position as agreed between us.
It is as follows:-
95/ASE ES
(1) The Military Authorities will carry out all anti-
malarial works required for purposes of the New Canton-
ments, that is over the area shown by a red circle on the
plan (Enclosure 2 to the Despatch of 25th November 1936),
subject to a maximum expenditure of $975,000.
(2) The Military Authorities will be responsible for
maintenance of these works.
(3) If the necessary capital expenditure on the works
shall amount to less than $975,000 it will in no way
affect the right of the military to waiver of the claim
of $1,000,000 in respect of the rent for Shamshuipo.
His Excellency
The Governor,
Government House,
HONG KONG.