no disagreement. This view was, however, not upheld by

the Secretary of State. The Hongkong Government declined

to accept any independent surveyor on the ground that he

would not be familiar with local conditions; it stated

that the War Office could, if they wished, send one out,

but that the Government would not bind itself to accept

his award and would not in any case pay a penny towards

his expenses.

As regards reprovisioning, the Governor

insisted that under the Circulars of 9th June,1890 and

30th December, 1894, the Colony's liability was limited

to the total value of the establishments surrendered, and

that any additional cost over and above this value should

be defrayed by the Military Authorities from the Military

Contributions paid by the Colony (20% of revenue less

certain items). The Secretary of State upheld this view,

which was supported by the G.0.C., but the War Office

declined to accept it, on the ground that the transfer

was not being made for military reasons. The Governor

stated, however, that the point was hardly likely to

arise, as the value of the property to be surrendered

by the military appeared to be much more than sufficient

to meet the cost of present reprovisioning. What the

Colony would not accept was an indefinite responsibility

for new undertakings such as aerial transport and the

housing of a second British battalion.

This, the War

Office stated, had never been contemplated.

In view of the fact that the local valuation

was made in 1920, the Governor in June 1923 offered an

addition of 10% to that valuation, but the War Office

declined to accept the offer and decided to send out Sir John

Oakley at their own expense to make an independent valuation.

The Colonial Government gave him every assistance in his

enquiries,

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