6.

Railway has already been referred to under Kowloon: it is

only necessary to add that there is a considerable section

of this railway, together with stations and other buildings,

situated in the New Territory itself.

11.

(b) Military ·

I attach a list C of the Military establish-

C-

ments situated in the New Territory.

It will be seen that

the Shams huipo barracks are included in this list, but,

owing to the military authorities desiring a larger area for future extensions, negotiations are proceeding at

present for the transfer to the military authorities of a

large area of land to the north of the Kai Tak Aerodrome

for military purposes.

300 acres. If the negotiations are successful, the Sham-

shuipo area will then revert to the Colonial Goverment.

This area measures between 250 and

As regards the strategic value of the New Territory to Hong

Kong, I would refer again to paragraph 3, showing the reason

given for the leasing of the New Territory.

It was, as

shown there, considered necessary for the proper defence

and protection of the Colony. I have consulted His

Excellency the General Officer Commanding the Troops in

this connection, and set out the following special reasons

adduced by him for retaining this area: -

(1) It is necessary to have a certain amount of elbow

room between the harbour of Hong Kong and the Chinese

frontier, otherwise in the event of war it would be possible

for the Chinese to bring, or the Japanese to land, heavy

artillery within range of the harbour itself, and thereby

render it insecure, if not useless, as an anchorage for the

British fleet.

(2) The present frontier, i.e. the line Sha Tau Kok -

Sham Chun River, is the only easily defended line (with the

small number of troops at our disposal) against any attack

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