to the foundations.

which would shake H.M.G.'s position if the Colony

263 of 283

He is very reluctant to do

this.

(179) on DEF.75/51/02

9.

The Governor therefore proposed in

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November that, as part of a deal on this question,

the War Office should surrender its lands in the

naval dockyard area and that, in consideration of

this and of an extra or two extra artillery units,

the Hong Kong Government would maintain its

defence contribution at £1 million of the next

five years, plus half the additional cost of

maintaining the additional units for the same

period. The Governor feels that an arrangement

of this kind would have a practical appeal to

unofficial members which would enable him to

present it to them in a favourable way. This

proposal, which was supported by C.B.F., Hong

Kong, was explained to the War Office and the

Ministry of Defence at a meeting under Sir Richard

Powell's chairmanship on November 19th, and at

that meeting the War Office was asked to examine:-

(a) whether it contemplated giving up its

property in the dockyard or continuing

to use it;

(b) the value of the property; and

(c) the details of title.

No indication has yet been received by the

Colonial Office as to whether this examination

is complete, and in the meantime the War Office

has agreed that no advance parties of the extra

artillery unit at present in Hong Kong should be

withdrawn until the beginning of February. It

is hoped that by then a decision will have been

reached on the extra artillery unit or units

for the Colony.

Page 263

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