ENCLOSURE No.3.
COPY.
No.H.K.0157.
27
Commodore's Office,
Hong Kong, 20th June,1930.
Your Excellency,
I have the honour to refer to my letter of the
1st November 1929, No.H.K.0157, and to previous correspondence on the subjects of (a) the removal of the Royal Naval Canteen to a new site, (b) the Arsenal Yard corner exchange and (c)
the transfer of the Royal Naval Arsenal Yard to Stonecutters
Island.
2.
The Admiralty have approved of the proposed
scheme for the transfer of the Royal Naval Armament Depot to
Stonecutters Island, provided that the Foreign Office,
Colonial Office and War Office concur, and I have been
directed to inform Your Excellency that on this understanding and subject to the following conditions, your predecessor's offer of $2,000,000 contained in his letter of the 22nd August 1929, No.3688/1928, for the surrender to the Colony
of the Naval Arsenal Yard and Kellet's Island is accepted :-
(i) Payment by the Colony to be made in four equal
instalments.
The Admiralty anticipate that the work will take
from three to four years from the date of
commencement, and, as much remains to be done
before drafts can be made, little work on the new site is likely during the present financial year. The Admiralty propose therefore that the
first instalment should be made on the 1st April
1931. This instalment will be $500,000 less
the amount of the payment mentioned in condition
(ii), below. The further instalments to be
made to coincide with the progress of the work,
at such dates as the Admiralty may desire, on