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The third is the Kowloon East Battery Military Reserve of which part (11 acres 1 rood 11⁄2 ooles) is now to be acquired by the Colonial Government and another part (18 acres 2 roods 24 poles) is noted for future acquisition at a price that has been fixed.

8.

In addition to this land the War Department

has no present use oforthe site of Murray Battery, for a property in Spring Gardens, or for the Centonment area at Stanley on the South coast of the Island, and these lands will be purchasable at their then market orice when circumstances may render such

purchase desirable.

9.

The transfer of other oroperties from the

War Department to the Colonial Government and vice versa are to

be in accordance with the terms settled at the conference at the Treasury on the 18th. October, 1902, and approved in your Des- oatch No.26 dated the 15th. January, 1904.

10.

In addition to the Memorandum now submit-

ted to you Colonel Lewis has drawn up statements of the parti-

culars of all the lands in the Colony over which the War Denart-

ment has rights including those with regard to which the Memoran-

dum oroooses rights should be acquired. These statements show

that no title deeds exist for most of the lands already held.

The Colonial Government has no intention of questioning the lar

Department rights to those lands but it is essential to avoid future difficulties that "Memoranda of Agreement", based on

Colonel Lewis' statements but accompanied by olans showing exact!

areas and boundaries, should be drawn up in proper form and duly

executed by the General Officer Commending and myself. It is

understood that this work will be put in hand by the Military

Authorities here as soon as approval is received from the War

Office of Colonel Lewis' recommendations.

11.

I have now the honour to request your sporo-

val of these recommendations and of the Military Lands Ac-

count

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