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R

ORTOVCO

No. 836.

9.

1.

9/3769/33

Sir,

GOVERNMENT HOUSE,

HONG KONG,

29 NOV 20

Q. C.

15th November, 1938.

I have the honour to acknowledge the receipt of your despatch No.260 of 17th August, 1938, on the subject of the site of the proposed Naval Hospital.

2. As was stated in my despatch No.276 of 4th April, 1938, I have already agreed to the renewal of the option in question on the present terms until 1st April, 1939, and I am glad to extend that until the end of the ten years' period viz. to September, 1939.

3. As regards the action to be taken after September, 1939, I shall be willing immediately to give an assurance that the option on the site at Stubbs Road will be extended the reafter on a year to year basis on

the existing terms so far as notice is concerned, viz. as set out in the second paragraph of the Admiralty despatch to the Colonial Office No.CEin C.

1305733/2916. 22nd April, 1933.

dated

4. The site in question is, as has been pointed out, a valuable one and might be expected to command a very high price in the open market, but I agree that

this consideration should not stand in the way of

affording Naval invalids the amenities of life which are

impossible in the existing Hospital.

5. As regards compensation terms I find myself

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&C.,

&C.

&c.,

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