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order to ascertain if they share all m views. Subject to this and to the Leceit of the Hongkong informatiom I am waiting for I am now ready for a conference when we can arrange one.

Without prejudice and -er- rese

all my rights and stipulating that

nothing I write is to be used in evidence against me I may say that the whole

,

question and all the voluminous back chat on each side seems to me to boil down to the main question ofxx whether the Government can fairly or equitably impose a premium for the renewal of the Leases for 15 years only.

It appears foom Butters's memorandum enclosed in Smith's despatch,which you may have received before now, that the Government are weakening a bit on this & that it might bepossible to arrive at a solution which might suit both sides.

At least that is my impression.

to

shöhet cff8ft time this be wanted is to

of s_mass

it

contrary allegations and arrive at a

fair solution without violent argument.

I will write to you again when I have heard from my people.

Yours sincerely

PS The Government seem to have carefully avoided answering most of my questions!

"

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