C. O.

26

Mr.

Mr.

Mr.

Mr. Parkinson.

Tomlinson.

Si Bottomley.

Sir J. Shuckburgh.

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State.

DRAFT.

[11m 72779]

No. C.E.in c

0136/30/3686

the Hong Kong Government was entitled

to assume from the terms of the

Admiralty letter of the 2nd of January,

193, that the new Depot would be

completed and the Arsenal Yard

evacuated and surrendered to the

Hong Kong Government in January, 1933.

3.

If the new Depot at

Stonecutter's Island will not be

completed till 1936, it appears that

the three instalments already paid

must be much in excess of the

expenditure already incurred.

would appea

6

in the circumstances, be no

There

urgency about payment of the final

instalment, and Sir Philip Cunliffe-

Lister is definitely of opinion that the 11. K. Govt would be fully justified in withholding

instalment

of $500,000 will be due

poput of the final wit

until

and when Their Lordships can

ar

state definitely that they will be in

[ to carry and thin part of the agreement, namely,

a position to hand over the Naval

Arsenal Yard free from encumbrances

(see in this connection Colonial Office

letter

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