Y

G/PMC

ENCLOSURE NO.2.

No. 13/2892/27II

CONFIDENTIAL

Sir,

Government House,

Hong Kong

23rd March, 1937.

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His Excellency

I have the honour to acknowledge

the receipt of Your Excellency's letter

C.R.C.C.X/14093/AQ dated the 19th March

current and to state that I agree in toto

with Your Excellency's summarization of the

position.

2.

In order however to preclude even

the slightest chance of future misunderstanding I should add, with reference to Your Excellency's paragraph 2 (5), that in any separate nego- tiations regarding anti-malarial works that

may be found necessary outside the areas covered by the plan the fact (if in the event

it should emerge as a fact) that less than $975,000 had sufficed for the capital cost

of works within the areas covered by the plan

would naturally be taken into consideration

by the Colonial Government as very pertinent to such separate negotiations.

3.

In forwarding my despatch to the

Secretary of State for the Colonies I have

appended the following paragraph:-

" 6.

I considered it advisable to send

my draft of the preceding paragraphs

The General Officer Commanding

The British Troops in China,

HONG KONG

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