CO129-333 - Governor Nathan - 1906 [1-4] — Page 35

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V

was reduced by the Lewis Agreement to a pacer credit of $117,000

yet the Colonial Government instead, as it seems to me, of recognising the great difference in their favour, now seeks to apply to its further benefit the very running account which it

was the object of the agreement to abolish.

4.

The proposed road will be of little or no

value as "a best possible communication", and of that I hold

myself the judge.

5.

I shall of course transmit copies of all

this correspondence to the War Office - of whose interests in

such matters 1 am bound to be careful. But I regret that I can- -not advise the War Office to accept Your Excellency's proposal.

I have etc.,

(sd.) V. Hatton,

Major-General,

Ocmmanding the troops in South China.