70 END
capital value of the area" calculated on part at 50 cents per square foot and on the balance at 25 cents per square foot. The Council do not at present understand the different bases of these charges, which appear, in the latter case, to contain a duplication of capital value, and they propose, unless Mr.Secretary Thomas has information which would enable him to throw light on the matter, to instruct the General Officer Commanding, Hong Kong, to clear up the point locally with the Colonial Secretary.
5. The Council note, with reference to their letter No.119/Abroad/ 2166 (Q.M.G.F. (b)) of 22nd August last, that the Secretary of State for the Colonies is unable to agree that the Government of Hong Kong should be invited to negotiate on any basis other than that the decision, which it is hoped ultimately to reach, on the question of the ownership of military buildings on Colonial Military Land, should govern the present. transaction also, and in the circumstances the Council feel compelled to defer to his view.
6. I am to return herewith the map which was enclosed in your letter now under reply.
I am,
Sir,
Your obedient Servant,
At Widelons
1/53654
35
52