COPY No. 18/3.

Sir,

Enclosure No.1 to Despatch No. 112 of the 24th March, 1902.

Government House, Hongkong, 10th March, 1908.

15327 La. 23 426

With reference to my letter Toya of the 17th January, and your reply No. 1803 of the 31st of the same month, I have the honour to invite your attention to the fact that unless the Government of this Colony is provided with more definite information as to the areas of land referred to, and the nature of the probable requirements of the Naval Authorities in respect thereof, it will be difficult in all cases to avoid action which might afterwards be considered prejudicial to Naval interests.

2. It is stated in your letter under reference that the Lords of the Admiralty would be glad to be consulted if at any time it may be in contemplation to concede Crown rights over islands in or near the harbour or land on its shores, as such areas might be considered useful to the Navy. Is the Government to understand that this has reference only to areas falling within the New Territory? At present the harbour limits extend from a line between North Point and Hunghom Dock Battery on the East, to a line between Green and Stonecutters' Islands on the West.

3. I need hardly point out that if the Naval Authorities are to be referred to before Crown rights over any lands within these or still wider limits can be disposed of by the Colonial Government, the delay involved by such reference might conceivably be productive of serious loss to the Colony, especially if in such cases the local Naval Authorities desired to refer the matter to the Lords of the Admiralty. I venture, moreover, to submit that the Colonial Government can hardly consent to refer to the Naval Authorities all proposals regarding the disposal of Crown land within the limits indicated in your letter.

4. I may, however, invite your attention to the fact that before sales of Crown land take place in this Colony, the Government always publishes in the Official Gazette a full description of the lot to be sold; and as such sales practically always take place by public auction, the Admiralty is quite at liberty to make offers for the purchase of any land which it desires to acquire.

5. In these circumstances I have the honour to request Commodore F. Powell, R.N., C.B.

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