Colonial Secretaryds Office
278
No. 2870/1922.
Sir,
Hongkong.
5th April, 1924.
With reference to your letter Shanghai 5/9 of the 19th March, 1924, I am directed to inform you that this Government is prepared to accept on 30th June next the sum of $79,680.95 in full payment for the buildings belonging to this Government of the British Post Office at Shanghai, including interest to 30th June,
I am, &c.
1924.
(Sd.) Claud Severn.
Colonial Secretary
appears not to be relevant, and the view of this Government
is that it may justly claim to be placed in the same
position financially as it would now have been in if payment
had been made in January, 1911.
3. The adoption of your suggestion that the interest
payable on the capital sum should be based on the approximate
rate which would have been obtained from an investment in
British Government securities would give this Government
considerably less than it would have obtained if the capital
sum had been paid in 1911 as (a) the money would probably
not have been invested in British Government securities ht
in Colonial securities paying a higher rate of interest and
(b) the interest received from whatever investment was made
would have been re-invested so that, in any case, compound
interest might reasonably be claimed.
4. This Government has, however, no desire to drive
His Majesty's Divisional Architect
H.B.M. Office of Works,
No. 2870/1922.
sir,
Shanghai.
Colonial Secretary's Office,
Hongkong
7th March, 1924.
I am directed to acknowledge the receipt of your
letter, Shanghai 5/6 of 25th January, 1924, with regard to the transfer of the Post Office building at Shanghai.
2. As the essence of the proposal which has been accepted in principle by His Majesty's Government is that the transaction should be treated as if the sale had taken place in 1911 the question of the peppercorn rental
appears
a hard bargain with His Majesty's Government, and in order
to settle the matter quickly, it agrees to accept the
suggestion which you have made to the Board of Works
provided that payment is made within a reasonable time.
would simplify the calculation of interest if the date of
payment were fixed for 30th June next, and that
arrangement would be satisfactory to this Government.
5. Copies of this correspondence will be forwarded
to the secretary of State.
It
I am, &o.
. Divisional Architect,
H.B.M. Office of Works. Shanghai.
(Sd.) Claud Sever.
Colonial Secretary.
•
Clerk