- 3 -
Encl. No.2.
by the Director of Public Works and Land Officer to
investigate this possibility. As a result tentative
suggestions were put forward which would involve, if
adopted, the transfer to the War Department of a
comparatively small area of the Arsenal Yard and the
removal of the ropeway to Military Land at a cost estimated
at £5,000. Alternative proposals are shown on the plan
already referred to. In this connection I enclose a
copy of a secret letter from the General Officer Commanding
the British Troops in China dated the 26th of June, 1931.
6. I consider that in return for the payment of
$2,000,000 the Hong Kong Government is entitled to obtain
delivery of the Naval Arsenal Yard free of encumbrances.
The question now arises as to who shall pay for the removal
of the ropeway.
The General Officer Commanding the
British Troops has intimated that he is not prepared to
recommend that this work should be done at the expense of
the War Department and the local Naval Authorities seem
disinclined to take any action in the matter.
There
does not seem to be any good reason why the acquiescence
of the Naval Authorities in the continued user of the
ropeway by the Military Authorities after the transfer of
the Yard to the former should involve the Colonial
Government in payment of the cost entailed by the diversion
of the ropeway or in the loss of the value of such land as
may be required for that purpose and it would seem logical
that the cost should be deducted from the price payable to
the Naval Authorities. I therefore seek your authority
to deduct the cost of removal from the last instalment of
$500,000 due from this Government to the Admiralty in 1933
and
49