the cost of the future maintenance of these works.

(2). The Colonial Government waives its

16

claim for $125,866 in cash from the War Department in

respect of the cost of resumptions and formations in

transferring the Kau Lung Tsai area to the military,

and in return the War Department in the Kau Lung Tsai

area will, at their own expense, construct a series

of roads of which the Colony will obtain the full

possession and user so far as these roads lie outside

areas of actual fortification vested now or in the

future in the War Department.

28 miles of road are affected.

We are told that some

From the date of

completion of the roads the Colonial Government, at

a cost of $10,000 to $15,000 per annum, will be

responsible for maintenance of such as are outside

War Department lands.

(3). The Colonial Government will double

the Kai Tak-Customs Pass Road at a cost of $60,000,

and the War Department will, at its own expense,

construct as a double road a length of about 4 miles

of the Customs Pass High Junk Road.

The Governor says that the roads and areas

concerned are marked on a map and plan which will be

delivered to the Colonial Office "by safe hand".

These have not so far been deposited here.

The Governor expressly recognises that a

settlement of outstanding questions on these lines

represents a greater concession by the Colonial

Government than anything contemplated prior to his

own arrival in Hong Kong. I don't think we need be

unduly disturbed over that, for it is undoubtedly

true that the burden of the cost of the garrison in Hong Kong has tended, and will tend further, to

increase substantially, and the increase will fall

to

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