35. S.
SECRET.
Enclosure I
Your Excellency,
HEADQUARTERS.
HONGKONG.
CO 243 33235
3914 OCT 11
25th, August, 1911.
Yesterday evening towards the close of
the meeting of the Executive Council I for the first time
became aware from a statement made by you to Council that
a proposal to grant a 75 years lease of a large area of
sea frontage on the Kowloon side of the harbour to a
Japanese steamship Company the Mitsui Bussan Kaisha'
as a site for permanent wharves godowns and coal stores
had been for some time under Your Excellency's consideration.
"
I understood you to say also that communications had taken
place on the subject with the Admiralty but that you had
not considered it necessary to refer in any way to the
Army Council. As far as I gathered the only stipulation
made by the Admiralty was that in the event of war we
should have a right of pre-emption on the coal in possession
of the Company at the time.
2.
As Your Excellency did not refer direct
to the Army Council and as I (and possibly my predecessor
also was unaware of the existence of any such proposal,
I must conclude that the Army Council has had no opportunity
of considering and commenting on the matter.
3.
That military considerations arise, which
affect the question, is in my opinion obvious, and these
considerations require more thought than the time allotted
to the matter in yesterddy's Executive Council admitted of.
I have now had time to think over the question and formulate
my views.
4.
$
Hongkong is not as for security it well
might
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