£425 was incurred at the suggestion of the Governor in Council but it would be very inconvenient for a Colonial Battery to be situated on an Imperial Reserve.

Article 524 in paragraph and his Excellency in treating these batteries at An acting summer 162 Harbour in Best Turin dis 14.

The Secretary of State has decided that Hong Kong from the 1st January 1865 shall contribute £20,000 per annum towards its Military protection but this alteration of principle will not of course have an ex post facto effect on previous authorising expenditure.

We do not judge it necessary to discuss the location of the Military Store in the context of the Committee's decision.

If this is the correct view, reference is made to the War Department's Despatch of the 25th August — W. R. to the Governor, and the correspondence regarding the fortification of the harbour, which has long been a matter of concern.

The work commenced in accordance with the proposal. Reference, of course, was made to the thick lands for this war's purpose, as previously created.

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