/9:CA
896/29.
COPY.
SECRET.
GOVERNMENT HOUSE,
HONG KONG
4th March, 1936.
13
sir,
With reference to Your Excellency's secret
letter C.R.C.C. No.X/11361/AQ of 5th February, 1936, I
have the honour to inform you that the Colonial Government
is unable to accept the conclusion stated in the seventh
paragraph of your letter as a reasonable solution of the
aerial Ropeway question, and has represented fully to the
Secretary of State for the Colonies its view that the
Colonial Goverment has every right to receive the Naval
Arsenal Yard from the Naval Authorities free from encum-
brances.
2.
The Colonial Government does not, however,
dispute the obvious advantage to be derived by the Military
Authorities from the provision of an access road to the
Magazine in place of the diversion of the present Ropeway,
and suggests as the most equitable solution that the authority of His Majesty's Government in London should be
sought to hand over to the Military Authorities the sum of
£5000 withheld by this Goverment from the purchase price
of the Naval ärsenal Yard payable to the Naval Authorities,
in return for which sum the Military Authorities would under-
take to remove the Ropeway by 30th June, 1937, and to make
His Excellency
The General Officer Commanding
The British Troops in China,
Headquarters,
China Command.