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of the 8th June, 1890, that the Military Authorities shall

"deal with Colonial Military land and buildings in such

manner as may best secure:-

(1) the efficient execution of the special service to

which the lands and buildings are devoted

(2) the general interests of the Colony".

I venture to observe that the Army Council has consistently

ignored the latter consideration.

6.

The refusal of the Army Council to accept

the local valuation, on the ground of the magnitude of the

transaction, appears to be contrary to the intention of

the Circular despatches which refer to a settlement by

agreement between the local Civil and Militery Authorities. The magnitude of the transaction is rather a reason why the local valuation should stand, as it is impossible to find anyone as well qualified as the Director of Public Works

and the Chief Engineer to decide this most intricate

question. The Army Council has presumably its own separate data as to the value of its properties in Hongkong, and if

these show any large discrepancies with the present

valuation this Government would be prepared to consider

any figures put forward.

7.

I telegraphed on the 22nd January that, if

the War Office sent a Surveyor, it must pay for him. The

Circular despatches provide that, in the event of

disagreement, an independent and competent Surveyor is to

be employed. There is no disagreement, but, if the Army

Council persists in its refusal to accept the settlement

already arrived at, I am prepared to agree to the appointment either of a local Surveyor in private practice, or of Mr.

J. Bradley, in charge of His Majesty's Office of Works, Shanghai; on the understanding that the cost will be defrayed by the Army Council, I cannot agree to the

appointment of any person from home, as he would necessarily

be

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