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your Despatch No. 406 of the 5th. December, 1901.

7.

There is a further point which has arisen

in the course of the correspondence with the local Naval and

Military Authorities to which I wish to draw your serious

attention.

It appears that a mixed Board appointed by the War

Office and the Admiralty has been sitting here to consider

certain Naval requirements at Hongkong and has recommended

that a large portion of the War Department Property in

Queen's Road adjoining the Naval Yard should be handed over

to the Admiralty. I referred to this matter in my Despatch

No. 396 of the 6th. of October, 1901.

As soon as I became aware of the contemplated

transfer of property I pointed out to the General Officer

Commanding and to Admiral Sir Cyprian Bridge that under your

Circular Despatch of the 30th. December, 1894, the property

in question if no longer required by the War Department must

be surrendered to the Colony under the prescribed conditions.

Sir W. J. Gascoigne agrees in my view in this matter,

and I trust that should any such transfer be desired the

principle which I have indicated and which is of great im

portance to the Colony will be insisted upon.

I have the honour to be,

Sir,

Your most obedient

Humble servant,

Stenen Gewebe

Governor,

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