CO537-3711 — Page 93

CONFID. (7226) No. 374

(Contd.)

As regards Sham Chun, the question of the permanent arrangements to be made in respect to it must be reserved for future consideration; but as it appears to have been the principal basis of the attacks on the British forces, it will be necessary that it should remain provisionally in British occupation for the protection of the leased territory and the maintenance of peace and order in the neighbouring districts.

(Signed)

I have, etc.

SALISBURY

2.