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4.
There are several good sites either for encampments or barracks on this area, which have now been proved by frequent use to be not only as good, but better for the health of the troops than either Kowloon or Victoria. There is a good water supply on the ground, and it is admirably suited for field training and field firing. It is also tactically well placed for resisting landings in the harbours to the north of Kowloon, and is also placed on the flank of an enemy attempting to raid the Devil's Peak batteries from the north end of Junk Bay.
5. I propose in the immediate future to place barracks for one regiment of Indian Infantry and the Indian Artillery, who are in charge of the mountain guns, on this ground.
6. It will be seen from the enclosures that the Colony hands us over a new rifle range, as already reported, and bears the cost of its construction.
The Dock Battery is valued according to the price the Colony will charge the Company. It is considered that the Dock company must eventually take it.
The areas at High West and at Mount Davis are valued according to the valuation awarded by the arbitrator.
8.
9. With regard to the last letter of the Colonial Secretary of 11th May, 1903, I consider that he brings forward very good reasons for not paying building value for the whole of the military reserve, and the fact that a park area will be maintained around the Gun Club Hill property,