No.1471/1919.

sir,

Memorandum D.

Goverment House,

Hong Kong

4th May, 1922.

216

:

...

With reference to your interview yesterday with Mr. Fletcher, I have the honour to state that this Government is prepared to undertake all constructional work in connection with the reprovisioning of the garrison in the sites to which it is transferred. The cost of such constructional work will be defrayed by this Goverment; provided that its financial obliga- tion in respect of land and buildings under the present schene shall be limited to the amount of its debit balance in the cash account, referred to in my letter of the 28th April.

2. With regard to the question of the break-up value of the existing military buildings it is the common experience in this Colony that a contractor requires payment for demolition work, as the value of the materials is not a sufficient induce- ment.

3.

If this Government desires to use permanently any of the existing buildings, it is prepared to accept a debit in the oash account for the value of such building in addition to the value of the site. If for example it is agreed that the Military Hospital is to be handed over to this Government for its use, the value of both the land and the buildings would be debited. There would be no debit in respect of buildings temporarily occupied pending development of the areas in which they stand.

I have the honour to be,

Sir,

Your obedient Servant,

(Sgd). R.E. Stubbs,

Governor, &c.

The Honourable,

Colonel C. W. Davy, 0,H,G.

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