Government House, Hongkong, 12th February, 1909.

33936/08

I have the honour to acknowledge the receipt of Your Lordship's Confidential Despatches of the 19th October and 18th December last on the question of crediting the War Department in the Hong Kong Military Lands Account with the capitalised value of the Crown Rent on their disposing of the lease of the property known as Spring Gardens (Inland Lot No. 427).

2. This question has formed the subject of considerable local correspondence, and I have now to transmit copies of the letters noted in the annexed schedule, together with the enclosed copy of a minute by Sir Henry Berkeley, at that time Attorney-General, upon which this Government bases its contention that the property in question does not fall under the operation of the Circular Despatches of the 9th June, 1890, and 30th December, 1894.

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REG 17 MAR 09

C.O. 9331

121

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