No.1471/1919.
Government House,
224
Hong Kong,
28th April, 1922.
sir,
With reference to Lieutenant-General Kirkpatrick's letter No.C.R.9350 of the 12th December, I have the honour to state that the Direct or of Public Works and the Assistant Colonial Secretary have reported to me the substance of certain informal discussions which, as Your Excellency is avare, have recently been taking place between them and Colonel Davy on the Military Lands question.
2. It is desirable to define in the first instance the general procedure to be adopted, and I concur that the transad- tions which are now in contemplation should be governed by the Colonial Office Circular despatches of the 9th June 1890, and the 30th December 1894; the reference most immediately in point being that contained in paragraph 6 of the latter despatch, which reads as follo78 ;-
"Whenever the Colony desires to retain any lands which "the Military Authorities give up, such lande, instead of "being offered for sale, would be valued, and the market "value of their fee simple at date of surrender would be "entered in the Special Account to dabit of the Colonial "Government, together with the fair solling at that date of "any buildings which might be upon the land. In the event "of the surrender of any buildings now existing which in the "past were erected at Colonial cost it would only be necessary to "record the value of the site. The amounts so entered "would be paid out as required for the provision of the lands "or buildings for the defensive purposes of the Colony, and "the amounts, as in the case of sale, credited to the Colonial "Government, the like credit being given in the event of new "sites being provided on Crown Lands. Should no new lands or "buildings be immediately required the amounts entered would "remain to the debit of the Colonial Government until such "time, if ever, as lands or buildings should become necessary "for defensivo purposes",
3.
The land most urgently required by this Government is that in the centre of the City of Victoria and the site of Whitfield Barracks at Kowloon; and I understand that the Military Authorities would be prepared to give up the areas shown in the enclosed schedule on the understanding that the War Office will adhere to the polioy agreed upon of stationing the greater part of the garrison on the mainland.
The Be
4. The schedule sets out the value per square foot of pach area as settled at the informal discussions which have taken place, The figures include the value of the buildings upon the land. are not required by this Government, and it is obvious that from a Commercial point of view the land cleared of the buildings is much more valuable than the land subject to the condition that the build- inge are to remain. It is provided in the Circular despatches referred to that values may be settled by agreement between the local Civil and Military Authorities, I consider that the rates per square foot are reasonable and fair to both sides; and, if you are prepared to accept them, I propose that their final adoption should
The be recommended to the War office and the Colonial Office. acceptance of the figures would not bind the War Department to the surrender of the land, but such areas as it givos up would be debited against the Colony at the rates shown,
/5.
1