HONGKONG LEGISLATIVE COUNCIL
resume possession, paying the value of the land. The trustees had power by statute to sell the land, but only to the local authority or to a certain Agricul- tural Association, the proceeds to be invested and the income applied for the purpose of the Society. It was held that, upon resumption of land by the Government, the trustees were not en- titled to be paid the unrestricted free- hold value of the land, but, in accord- ance with the ordinary rules as to com- pensation, the value of the land to the trustees under the conditions upon which they held it."
The second point which we wish to make is that, on the actual wording and natural interpretation of the Circular Despatches relating to Military lands, both parties to the 1922 valuation, i.e., the local Colonial and Military authori- ties, were legally bound by it.
For the purpose of making this latter point clear it will suffice to refer to the following extract from the Military Land Circular Despatch, which was quoted by Mr. Fletcher in his speech to this Council on the 7th ultimo:-
"Valuation of lands or buildings, when required under the circumstances above mentioned, should be made by the Colonial and Military Authorities conjointly, or, in the event of their dis- agreeing, by an independent and com- petent surveyor, to be chosen by agree- ment between the Home and Colonial Governments, whose report should be final."
The meaning of the above sentence is clear.
"The Colonial Authorities" means the Colonial Authorities here on the spot, and "the Military Authorities" means the Military Authorities here on the spot, just as "Colonial Government " means the Colonial Government here in Hong- kong, as distinguished from the Home Government, which is also referred to in the above extract.
Accordingly, it follows that the valua- tion of the military lands, as arrived at between the Colonial Government and the local Military authorities in 1922, being a valuation made by them "conjointly, was a binding valuation, and any further reference to an "independent and com- petent surveyor" was clearly outside of
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the language of the Circular Despatch, which contemplated a reference to independent and competent
surveyor solely in the event of a disagreement be- tween the Colonial and Military authori- ties.
Moreover, we understand that, under similar circumstances in the past, the War Office has, as we contend rightly upon the true construction of the Cir- cular Despatch, left matters of valuation to be settled between the local Colonial and Military Authorities, and we under- stand that the only reason which the War Office has put forward, in the present instance, for not adhering to the same interpretation of the Circular Despatch is that the present transaction was too important to be governed by a valuation arrived at locally.
With deference, such a reason seems to us to be an inadequate one for de- parting from figures which were carefully inquiry and with special knowledge of arrived at, after full investigation and
local conditions, between the Colonial Government and the local Military
authorities; and we, therefore, regard the subsequent action of the War Office in forcing this Colony (in defiance of ine above-quoted words of the Circular Des- patch, and notwithstanding the absence of any disagreement between the local Colonial and Military Authorities as to the valuation of the lands) to lay its case before an independent and competent surveyor," as umpire, as being both arbi- trary and irregular.
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Such arbitrary action by the War Office threatens to involve this Colony in the payment of over 5 million dollars extra (ie., $17,000,000 against about $11,300,000) out of our funds, and will make a serious extra inroad on our finan- cial resources, depriving us of almost all the Reserves which we have been ac- cumulating for some years past.
The Unofficial Members of this Council cannot view such a state of affairs with equanimity, especially having regard to the heavy commitments which lie before us in the near future of some millions of pounds on the Fitzmaurice Harbour Scheme and seventeen to eighteen million dollars on the Shingmun Waterworks scheme, besides other large expenditure for reclamation and building and general