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Colonial Government and any further parts of it that may be re- quired in the future for buildings are to be purchased from that Government. Though this land is thus not treated as in exclusive possession of the War Department the Colonial Government will consent to its enclosure for the purpose of keeping out unauthori- zed persons.

5.

The Ngau Tau Kok or Kowloon Peak Reserve as

far as concerns that part of it which will not be purchased for exclusive occupation (2,357 A.) and the Kowloon City Rifle Range and Reserve (258 A.) are orocosed to be rented in accordance with the principle enunciated in paragraph 2 above.

3.

Sun Club Hill and the parts of Stonecutters' Island not already in the occupation of the War Department (140 A.) which it had been proposed to transfer to that Department at a so-called agricultural value of $1 an acre are to be surrendered by the Colonial Government, the former without record of value, and the latter at a value which will approximately cover the cost to the Colony involved by the abandonment of the selected gaol site on the Island. By this means record of the wholly fictitious value of $1 an acre is avoided.

7.

Of the 16 Reserves defined by Colonel Storer

in 1891 which were referred to in parsgraon 8 of my Desostch No. 328 of the 18th. October last and concerning which you made fur- ther enouiry in the second oaragraph of your Desogtch No.848 of the 14th. December, twelve of which no use had been made and which are not now required for Military purposes are considered to have reverted entirely to the Colonial Government. Of the remaining three, which were in fact claimed by the War Department before 1891, ons the Sanitarium Reserve (49 e.) is proposed to be rented by that Department until the Colonial Government is ready to deal with the comolete sanitation of the site. The second is included in the Kowloon Military Reserves already referred to.

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