It appears to be being a prospect of the Admiralty being able to acquire additional land in that locality for the necessary extension. Under these circumstances, it is thought possible that it might be found more convenient to abandon the existing Naval Yard at Hongkong Island, and extend the one at Kowloon.
I forward for Your Excellency's information a copy of a letter and a tracing by the Surveyor General showing the land which he would propose to give in exchange for the Naval Yard. The area of the Hongkong Naval Yard site is 211,000 square feet, whilst that of the ground proposed to be given in exchange is 1,329,200 square feet, or nearly five times as much.
I am prepared to recommend to the Secretary of State to sanction this exchange, if, on consideration, you find it advantageous to the Admiralty to accept it. The Colony will derive advantage from this change, inasmuch as the opposition of the Admiralty to the long scheme of extending the Praya East will by this means be overcome.
80/ W. H. Marsh.