I
}
堂
}
!
:
Despatch of the 12th. February, 1909.
Gary 331
443
Wo 44202
9
In conclusion I desire to emphasize
the fact that the terms then offered are extremely favour-
-able to the War Department. The lot in question was bought
by the Military Authorities in 1857 for $25,000, which at
the then value of the dollar (4 s. 2 d.) was the equivalent
in sterling of £5,208. But from the year 1859 inclusive
down to the present time the Military Authorities have
received from the Hongkong Government an annual grant of
£150 in respect of this lot: for, as the War Department
point out, in their letter Hongkong 8/63 (L.B.) of the
2nd. December, 1908, the local revenue suffered a loss of
£150 per annum "the effect being precisely the same as if
the Colony had obtained the Crown Rent and paid £150 in
cash annually towards the Military requirements of the
Colony's defence". The total of these annual contributions
will at the close of this year be £7,650: or assuming a
rate of interest of 5 per centum (the local rate being ô
or 7 per centum) a sum of £34,768: therefore, as the War
Department only paid £5,208 for the purchase of the proper-
-ty, they will at the end of this year have had the
occupation and use of the lot for 51 years and have made
in addition a profit of £2,442, being the excess of the aggregated