896/290II

SECRET

Sir,

21st May, 1937.

I have the honour to acknowledge with thanks

the receipt of His Excellency the General Officer

Commanding the British Troops in China's secret letter

C.R.C.C. No.X/11361/AQ of 10th April, 1937, informing

me of the agreement regarding the evacuation of Kelletts

Island and the removal of the ropeway, and to express

my appreciation of the satisfactory settlement of this

question.

2.

It has however been the contention of this

Government from the beginning that the dismantling of

the ropeway is a matter for the Naval and Military

Authorities and I shall accordingly be glad if arrange-

ments to this end may be made direct between the War

Department and the Admiralty.

The Honourable

I have the honour to be

Sir,

Your most obedient Servant,

N.L. Smith.

Officer Administering the Government.

The Officer Commanding the Troops,

Headquarters,

China Command,

Hong Kong.

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