No: 88/0

Sir,

Enclosure No: 5

181 577

Government House,

Hong Kong,

24th September 1900.

I have the honour to acknowledge the receipt of

Your Excellency's letter of the 13th instant, and to

inform you that I consider your action in referring to the

Land Court in order to determine the owners of land at

Devil's Peak to whom payments should be paid in connection

with the defences to be erected there, as prudent.

2.

With regard paras: 3 and 4 of your letter, I have

to inform Your Excellency that as advised by the Attorney

General I do not read paragraph 11 of the Secretary of

State's Circular of the 30th December, 1894, as an instruction to the Governor to expend any sum from the General

Revenue in the purchase of lands from private owners for

military purposes, beyond the amount that under the

arrangement there proposed may be shown in the Treasury

books as a debt against the Colonial Government.

Such a financial responsibility would place the revenues of this

Colony at the disposal of the Military Authorities and

would involve an undetermined increase of the 17% on gross

revenue payable to the Imperial Government for military

purposes.

I have &c.

(Sgd:) Henry A. Blake,

Governor &c.

His Excellency,

The General Officer Commanding.

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