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Memorandum P.

After considerable discussion the meeting came to the unanimous conclusion that certain proposals put up by Major- General Sir J.S. Fowler could not be agreed to,

At Appendix A. to these minutes is a copy of a letter that it is proposed to send in reply, which embodies the resulta of such discussion.

The main pointe on which the Conference could not agree with General Sir J.S. Fowler are :-

(a)

(b)

(c)

(a)

(e)

They could not accept the g.11,291,446 figure as to the valuation of War Department property which it was proposed to hand over to the Colonial Goverment at Hong Kong.

Lieut.General Sir G.. Kirkpatrick considered that this was very much under- estimated, and recommended that an independent valuer should go out to Hong Kong and value the whole of the property.

The terms of the Colonial Office Circular Despatch drawn up on 30th December 1894, between the Home Government and Colonial Government would not be departed from if such action was taken. This procedure is explicitly allowed for in the terms. The Conference agreed to this proposal.

It was unanimously agreed that whatever accommodation the Colonial Goverment wished to take over from the War Department the former was to re-provide in its entirety, at the same time agreeing to re-provide such buildings with all modern conveniencies and up to date in every way, also all means of communication, e.g. roads, eto., were to be provided at the same time.

They cannot agree to the principles contained in para.4 of General Sir J.S. Fowler's letter,

Lieut.General Sir G.M. Kirkpatrick said that the value of the land it was proposed to hand over to the Colonial Government was about ten times as valuable as the land it was proposed to get in return, and therefore the War Department should get the credit. Under no consideration should it be a level exchange.

This was unanimously agreed to.

They could not agree to the Pinewood area (reference para,6 of General Sir J.S. Fowler's letter) being sold to the Colonial Government at the same price it was bought at in 1905.

The independent valuer, when he values all property should also revalue this area up to the present day basis.

This was unanimously agreed to.

They could not agree that the apparent debt of

$ 114317.18.9, due to the Colonial Government, should be taken into consideration when considering this scheme; and it was proposed that the Treasury should be consult ed.

This was unanimously agreed to.

(1)/

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