Any further communication on this subject should be addressed to

The Under Secretary of State,

War Office,

"Works."

London, S.W.,

and the following number quoted.

25019

War Office,

London, S.W.

2 Dec.

1897.

Hong Kong 5/17364/97

Sir,

With reference to your letter of the 14th of April last, No:6749/97, on the subject of lands at Kowloon, near Hong Kong, over which the War Office has held certain rights for defence purposes, I am directed by the Secretary of State for War to inform you that under all the circumstances, he consents to waive any further claim that the difference in value between the lands when subject to the rights, and the value when freed from the rights, should be recorded as available for military purposes under the C.O. Circulars of June 1890 and December 1894.

While making this concession, however, the Secretary of State must demur to the contention in your letter under reply, that "the reservation of" the War Office "rights over the lands in question was merely temporary and provisional, pending a decision as to the scheme of defence upon which would depend the question whether the lands would be required to be kept free

The Under Secretary of State,

Colonial Office.

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