161
HONGKONG LEGISLATIVE COUNCIL
Į
far as it will extend, to providing other lands or buildings which may be required in the Colony for such purposes.
"Valuation of lands
or buildings when required under the circumstances above mentioned, should be made by the Colonial and Military authorities 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."
There is this liability in respect of military lands, and there is the further obligation on the Colony to provide 20 per cent. of its revenue under the Defence Contribution Ordinance, 1901, paragraph 5 of which reads:-
"The said percentage shall be deemed to be a fixed contribution pay- able by the Colony in full return for the annual cost of
the Imperial garrison, including all capital expen- diture required for military lands and buildings and the cost of maintenance of all military works and buildings. and the cost of lodging in lieu of barracks and all other military charges whatsoever, provided that in no year shall the sum paid by way of percen- tage exceed the cost of the garrison for that year."
The question of military lands tenure was the subject of constant friction and dispute over a period of many years until the position was finally crystalised in the year 1905 by what is known as the Lewis agreement. Since that date the rights of the military over their land, their reserves, and their encroachments have been absolutely defined, and it must be accepted as a postulate of the present argument that these rights are absolute and that they must be bought at the existing market value. This demand for the removal of the garrison from its present position comes, not from the Military Authorities, but from the Colony, for reasons which are so obvious that it is not necessary for me to refer to them at any length. These large self-contained areas block the normal development of the Colony and they isolate large busi- ness districts one from another. The Army Council has expressed itself as willing to sell at a price and it is now for us to consider whether it is worth our while to pay that price.
THE PRICE.
3
As to the price. In the early Spring of 1922 Mr. Perkins and myself, repre- Davy, representing the senting this Government, and Colone
local military authorities, negotiated
all agreement, signed finally on the 31st March, 1922, which was endorsed by their Excellencies the Governor and General Officer Commanding and was forwarded to the Imperial Government for approval. Cer- tain correspondence ensued with the War land rose very rapidly. The boom had Office and in the meantime the prices of
set in in full force. The War Office decided to investigate the matter itself they sent out Sir John Oakley. On his upon the spot, and in September, 1923,
arrival the Government decided to invite him to act as arbitrator with this limita- tion, that, while his figures would not be questioned, yet the Government of the Colony must reserve the right to reject them in toto. I think that this was a wise decision, because Sir John Oakley as Arbitrator, must necessarily be in a more independent position
position than as Valuer for one side only, and as the War Department were in a position that they did not care whether they sold or not, they were sure to stand by his figure. I may here express the opinion that the Colony has been very fortunate in getting an arbitrator of the calibre- of Sir John Oakley. I think that opinion will be endorsed by all who came in contact with him. As both the Gov- ernment of the Colony and the local military authorities were in agreement, it was decided not to call separate wit- nesses for either side. The names of prominent business men and valuers were put before Sir John Oakley, and he called those whom he wished. The gentlemen who gave evidence were the Hon. Mr. A. G. Stephen, the Hon. Mr. P. H. Holyoak, the Hon. Mr. Chow Shou Son, the Hon. Mr. R. H. Kotewall, Mr. Bernard, Mr. Henry Humphreys, Mr. L. G. Bird and Mr. Gibbs. A number of officers in the Public Works Depart- ment were also called. The Governinent prepared elaborate plans showing the position of all lands sold at public auc- tions during the last 14 years in all parts of the Colony, giving the upset price, the realised price and the rate of Crown rent: and also plans showing all private sales, between private parties.