OP Y.
Secret.
Sir,
Encloause I to Gov's Jean't. 13.
Government House,
که
102
Hongkong, 7th. February, 1912.
12.
#i
I have the honour to transmit in original for your
perusal and return a despatch received from the Secretary of State in
which he asks for my views in regard to War Office letter 083/4639
(M.0.1) Secret of 20.12.11. which had reference to your Nos. K/378/4
and K/378/6 of the 1st. and 7th. September, 1911, addressed to the Army
Council.
2.
I observe the War Office in their letter (which
forms an enclosure to the despatch now transmitted to you) while
raising no objection to the lease of an area of sea frontage to a
Japanese firm on the conditions proposed, are of opinion that in
"certain cases* unrestricted sales may endanger the defences, more
especially in the case of mining rights. The War Office suggest legislation conferring pover on the Governor to prevent the sale of private land of the construction of buildings if in his opinion, as advised by the Naval and Military Commanders, such sale would imperil
the defences. They also urge the necessity of the power of resumption
by Government of land at short notice in emergency.
3.
So far as sales of Crown land are concerned, there appears to me to be little difficulty, for they are invariably sold by Public auction and are previously advertised in the Gazette, and if either the Military or Naval Commander considers that the sale would endanger the defence it would rest with him to inform the Governor of his view, when the sale would be postponed pending full consideration
of the matter.
4.
The grant of prospecting rights (which under the existing law convey a right to an eventual "Mining Lease" on certain conditions) or the grant of a Kining Lease presents no serious difficulty, for the area of territory is mall, and it is believed to be be barren of payable minerals so that in the rare cases where a con- -cession of such rights is sought it would be easy for the Government
to