Lansdowne has now, subject to the undermentioned conditions, consented to waive any further claim in the matter, on the understanding that the difference in value between the lands when subject to the rights in question, and the value when freed from those rights, should be recorded and made available for military purposes under my predecessors' Circulars of 9th June 1890, and 30th Dec. 1894.

3. It is agreed that the land hatched green on the enclosed tracing, which is required for the extension of Hongkong and Whampoa Dock Company's premises, should be given to the company on the understanding that the new site for a depression range finder, as shown on the tracing, be given to the War Dept. in exchange for the old site, without any record being made of the values of these areas, as originally proposed in my despatch of 7th March 1896.

4. It is further agreed that the military rights over the other areas referred to in your despatch under acknowledgement should be given up without any record being made of the value of those rights.

[m. 6051/46]

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