2.
28
3.
(ii)
(iii)
the understanding that the final instalment will
not be asked for until the Arsenal Yard and
Kellet's Island are surrendered, evacuated and available for transfer to the Colony. Reasonable notice to be given to the Colony when payments are required.
The Admiralty understand from section 2 of Sir Cecil Clementi's letter of the 22nd August 1929, that the Colony desires to pay forthwith, in order to settle the accounts of the Praya East work, the sum which would have represented their share of the replacement work necessitated by
the corner exchange, even though that work will
not now be necessary. Your Excellency's predecessor was informed by the Commodore,
Hongkong, in his letter of the 12th September
1929, No.H.K.0157, that the estimate of that
liability was £16,258. The Admiralty will
accept that sum as an advance on the first instalment mentioned in the foregoing condition, if the Colony so desires, during the present financial year.
Admiralty approval of the scheme for moving the Naval Arsenal Yard to Stonecutters is conditional
upon the Colony arriving forthwith at a settle- ment of the Canteen question that is acceptable
to the Trustees.
With reference to condition (iii), on the
23rd May 1930, I reported to the Commander-in-Chief the situation in regard to the removal of the Canteen to a new site; treating this question as an entirely separate matter