7
C.O.
565
43499
13 SEP 24
Any further communication on this subject should be addressed to-
The Secretary,
War Office,
London, S. W.,
WSB.
War Office,
and the following number quoted.
Hong Kong 8/360 (D.L.1.a.)
Sir,
London, S.W.
12September 1924.
Wo
With reference to your letter of 5th May last .18935/1924, relative to the transfer of military establishments in Hong Kong; I am commanded by the Army Council to state for the information of Mr. Secretary Thomas that the Council, while regretting the impression which their action in this matter appeare to have created in the Colony, desire to point out that in their view, their position as trustees of Imperial funds provided for the maintenance of the Army left them no alternative but to adopt that procedure.
2. The Council are unable to accept the view that the figures awarded by Sir John Oakley after an exhaustive examination of the local conditions are in any respect excessive or unfavour - able to the Colonial Government. Moreover, while any balance left after the cost of reprovision has been met will, as the Governor points out, remain merely as a debit which may not be worked off for yeare, if ever,
the Colonial Government will have the benefit of the surrendered lands as from the date when reprovision of the necessary accommodation is completed.
3. with regard to the first concession suggested by the Governor the Council feel confident that an Arbitrator of such widei experience as Sir John Oakley cannot have failed to take into account the proportion of the lands to be surrendered by the War Office which must, in the course of development, be devoted to roads. If it could be shown, however, that the proposed widening of Garden Road and Queen's Road would result in some specific naval or military benefit, they would be prepared to consider the question of allowing an abatement from the amount awarded on the basis of the value of such benefit. The Council are in communication with the local military authorities upon this question and will, in due course, consider it in connection with the Governor's other suggestion that payment should be waived in respect of the land required by the University of Hong Kong. They are, however, not at present in a position to commit themselves to the principle of allowing an abatement in either case,
4. With regard to the question raised in paragraph 5 of your letter, there would seem to be some misconception: War Office letter of the 14th November last stipulated that, as part of the reprovision, the Colonial Government shall provide
"additional/
The Under Secretary of State for War,
Colonial Office,
Whitehall,
S.W.1.