2.

25

However, this would not obviate the chance of an explosion,

and would not meet with Your Excellency's wishes.

Consequently, provisional plans were prepared to

accommodate all Military explosives now on charge, plus probable

reserves requiring accommodation in the near future.

These plans comprise the building of four magazines

on existing W.D. land at :

Stonecutters, Lyemun, Mount Davis, Kowloon.

at an estimated cost of £71,000.

3.

The question of transfer of land from the Military

authorities to the Colonial Government was not definitely dis- cussed, although it was anticipated that in due course some surrender of Military land would be demanded, in return for

the construction of the four new magazines.

I regret, however, that it would be quite impossible

for me to recommend to the War Office the complete surrender of

the area coloured red and yellow on the map accompanying your

above-quoted letter.

Quite apart from the actual value of the ground, it

would be impossible to surrender it without some definite guarantee

as to what is to be done with it. For instance, if a large block

of tenement flats were to be constructed, suitable for occupation

by the poorer classes, it would be instrumental in entirely destroying the present amenities of our Headquarter Offices and

Victoria Barracks.

On going further into the question, I consider, after personal inspection, that we must retain the buildings and sites marked blue on the attached tracing, which will fit over your map.

4.

It appears reasonable that we should surrender the rest of the ground marked red and yellow, in return for the four

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