2.

be commenced, plans prepared by an authorized architect or

engineer must be approved by the Public Works Department.

3. As regards sites available it is assumed that

access by sea is essential. There are undeveloped sites on

Chung Hue Island and other places in the Colony and the New

Territories. The premium would probably vary from about $435

to $2,200 per acre, and Crown rent from $100 to $200 per acre

per annum according to the locality desired. The cost of development and access would be additional.

4. The i̟" to 1 wile map (Geographical Section,

General Staff No.1393) of Hong Kong, including the New

Territories, is published by the Geographical Section of

the War Office and is presumably obtainable at map selling

establishments in London.

5. While this Government is anxious to encourage

the establishment of new industries in the Colony, it feels

it incumbent upon itself to remind you that the market for

the products of the factory is limited. It is assumed

therefore that before you embark on this project, the primary purpose of which is the supplying of articles of ammunition

to His Majesty's Forces in the Far East, you will satisfy

yourselves that His Majesty's Government will purchase these

articles. In the case of foreign countries the only market

likely to be open is China. The export of munitions from Hong Kong to China, under arrangements with the Government of China, is only allowed if the permission of the Central

Government of China has been first obtained.

I am, Gentlemen,

Your obedient servant,

Colonial Secretary.

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