7
'COR
Y 400
COPY.
„VONSLIND .Ok
TONI,ISMVul! 2002 „not hol
No. 10.
404
Colonial Secretary's Office,
No. I in 134/1906.
13573
Hongkong, 9th. December, 1907.
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Riot 25 JUG 13 to acknowledge your letter llo.
I have the
C/112/07 of November 20th., 1907.
I am directed to point out that the Colonial Office
Circular of December 30th., 1894, to which you refer in your 2nd.
paragraph is concerned only with the surrender of lands by the Military Authorities to the Colonial Government (vide paragraph. 11). In so far as the acquisition of lands from the Colonial Government by the Military Authorities is concerned, the conditions existing prior to the year 1896 were completely changed in that year by the arrangement under which the Colonial Government undertook to pay 17 per cent. of its ordinary Revenue towards Military expenditure. This arrangement was further extended in the year 1901, when the Colony undertook to increase its Contribution to 20% of the ordina- -ry Revenue on the understanding that this contribution should cover the cost of all lands and buildings. That this view adinite of no doubt you will I feel sure be convinced by the following passage which I am directed to quote from a despatch of the Secret- -ary of State dated 24th. October, 1900, stating the conditions
upon which the 20% contribution was to be made.
*The new contribution will be payable by the Colony "in full return for the annual cost of the Imperial garrison, "including all capital expenditure required for military lands and "buildings. As part of this arrangement, all lands required by the "War Department which are the property of private persons will be "purchased at the coat, and will become the property, of that De- *-partment. Lands which belong to and are occupied by, or are a *source of revenue actual or potential to, the Colonial Government "should be similarly treated. When the land is thus purchased by "the War Department, the capitalized value of the Crown Rent will "be paid by that Department to the Colonial Government at the time
"of