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revenue there might be at the disposal of His Majesty's Government for war purposes. It was accordingly suggested
that it might be the desire of the Legislative Council to treat this war payment as a contribution towards the cost
of the war and to waive refund.
At the time of the receipt of the War Office
letter (which was forwarded by your Department to Hong Kong)|
the Colonial Government was much exercised over the re-
distribution of military sites in the Colony, which the Governor described in the confidential despatch of 17th July, 1920, not only as "a matter of urgency'' but as "vitally important ... to the Colony". He therefore proposed that
the refund of the over-paid contribution should be
considered in that connection, and stated that if the Army
Council were ready to shew a reasonable spirit in the
matter it was quite possible that he could persuade the
unofficial Members of the Legislative Council to waive the
refund of the overpayment. The Army Council were
satisfied to leave the matter there for the time being.
Since that date a number of fresh circumstances
have arisen which have placed the question of the military
lands in the quite different position stated in the first
paragraph of this letter. It is not necessary to rehearse
the history of this matter, but the fact that the
negotiations were brought to the verge of completion is
evidence (if evidence were required) of the display by the
Council of that reasonable spirit which the Governor in
1920 invited.
The Council therefore trust that the Secretary
of State will be ready to propose to the present Governor
that he should follow out the line indicated by his
predecessor in the despatch quoted above, and use his
influence to persuade the Legislative Council to waive the
refund.
In