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3.
My Lords anticipate that Naval requirements
will necessitate taking over both the red and blue areas,
but They are not satisfied that payment ought to be made
for land required for defence purposes, having regard to
the general obligation of a colony to contribute, according
to its means, towards its own defence. This obligation
was recited in paragraph 11 of Colonial Office circular
dispatch of 30th December, 1894, and was especially
connected with the maintenance of its Colonial Military
lands a definition within which the Arsenal land appears
to fall.
4.
My Lords are not unmindful of the contribution
of $ 2,000,000 by the Colonial Government to induce the
Admiralty to move their Armament Department from the
Arsenal Yard and surrender that Yard, but the actual cost
of building the new Establishment was much in excess of that
payment and no part of the $ 2,000,000 can be regarded as
payment for land.
In the view of My Lords, now that Imperial
requirements necessitate the acquisition of additional land
at Hong Kong, the local Government could reasonably be
requested