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: add 27.000 to the original estimate of cost which would then be raised from £... to a larger sum.

According to this latest proposal, the Military would gain six acres of reclaimed land and the Civil Authorities two and a half acres. The whole was valued by the Surveyor General at £21st S.

This last scheme (0:3) was agreed to after some discussion between the Military, Colonial, and Civil Authorities, the latter relinquishing their demand that Kai Tak should be transferred to them. The only question on which no agreement could be come to was the share of the cost which was to be borne by each department. The Military Authorities both declined to bear any part of the cost.

The Secretary of State for the Colonies, on the other hand, would only consent to the work being undertaken on condition that the Imperial Government should pay largely. This increased proportion was not unreasonable in consequence of the original estimate being raised in order to meet the conveniences of the two Imperial departments, from £... to £4.00.

9. The last communication on the subject was from Admiral Sir G. Willes received by this Government in March last year. He informed Sir Gery Power that the question of extending the Naval Yard was under consideration at the Admiralty, and that until this was settled, there must be a postponement of the extension of the Praya.

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