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CONFIDENTIAL.

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RE! SEP 20

23

HONGKONG.

GOVERNMENT HOUSE.

17th July, 1920.

24586

My Lord,

11:250.

I have the honour to acknowledge the receipt

of Your Lordship's despatch No.91 of the 13th March, 1920, on the subject of the overpayment by this Colony of Military Contribution in respect of the financial years 1917/18 and

1918/19.

2.

I have the honour to invite reference to my

despatch No.104 of the 23rd March, 1920, in which I asked

that the re-arrangement of the military lands in the Colony

might be treated as a matter of urgency; and I suggest that this question of the refund of military contribution should

be considered in this connection. It is doubtful whether the

Army Council fully realise how vitally important this ques-

tion of lands is to the Colony. The peculiar formation of

Hongkong, with its steep hills going down abruptly to the water's edge, affords hardly any level sites, and practically

the whole of the town is built either on reclaimed land or on

land levelled to supply spoil for reclamation or on areas

terraced out of the hill-sides. The rocky nature of the soil, combined with the steepness of the slopes, makes the cost of building very high in any case, and as all the central sites are developed to their utmost capacity, and in many cases at

an expense which would be incredible elsewhere, housing and business accommodation has to be sought ever further and

further

RIGHT HONOURABLE

VISCOUNT MILNER, G.C.B.,

&c.,

&C..

&c.

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