The Progress of Siam has been such of late years that i think the time has arrived when this goverment may look forward to more control over its own affairs and to less interference from without. To obtain such control is, my opinion well worth sacrificeof territory over which the Goverment does not excercise effective control and about which questions of difficulty may arise. ''In pursuance, therefore, of such policy of which the late Treaty with France is an example, I should be willing to propose to the Siamese Government the cession to Great Britain of the states of Kelantan, Trengganu, and Kedah, provided that the British Government would be willing to make the following concessions 1. The abrogation of the Secret Agreement of 1897; 2. The giving up of exterritoriality, at least to the extent which has been yield by France by the Treaty of the 23rd March this year.'