(Copy.)

C.R.C.C. No. X/14870 (G).

SECRET.

Headquarters,

China Command,

Victoria Barracks,

Hong Kong.

26th May, 1938.

8

Your Excellency,

I have the honour to forward herewith in continuation

of my letter No. C.R.C.C. NO. X/14870 (G) dated 28th March, 1938,

to the Hon. The Colonial Secretary, a copy of War Office reply

to wire referred to therein. From this it will be seen that

there has been a change of War Office Policy as regards the degree

of protection which should be given to petrol stores and,

consequently, in itself the building by Asiatic Petroleum Company

of a bomb-proof tank sufficient to hold the military requirements

does not appear to attract the War Office. In any case I

understand the amount of the War Office contribution would be of

small importance in relation to the whole project, and that wider

factors must be adduced to justify the cancellation of the

existing project and the transference of the site from TSUN WAN

to YAU TONG WAN.

From the point of view of the Defence of the Colony

there are three good reasons for locating the Asiatic Petroleum

Company Petrol Installations and Tank Farm at YAU TONG WAN.

They are as follows :-

(a) The degree of protection against Air attack is

considerably higher over the harbour area than over TSUN WAN.

The protection accorded by the land defences has already been

emphasised, but in addition, it may be assumed that risk of

sabotage will be less at YAU TONG WAN than at TSUN WAN, which

is in so isloated a position.

(b) A road from KAI TAK to YAU TONG WAN would be of advantage in facilitating the movement of troops towards

DEVILS PEAK.

His Excellency,

The Governor and Commander-in-Chief,

Hong Kong.

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(c) Distribution of petrol and oil would be simpler in Peace and slightly more secure in War.

The matter has been referred to the Commodore who expresses the opinion that there would appear to be advantages in siting the installations within the defence line, but the

proposal may not be acceptable to the Harbour Master on account of its proximity to the "Dangerous Goods Anchorage". I take it the latter is a temporary objection.

In view of the above observations it is recommended that the Asiatic Petroleum Company be encouraged to transfer their installations to YAU TONG WAN and such moral support as I can give to this and to the construction of a road from KAI TAK to YAU TONG WAN I will give.

I have the honour to be,

Your Excellency's obedient servant,

(Sd.) N.M.S. Irwin.

Colonel,

for Major-General,

Commanding the British Troops in China.

(Absent on Duty.)

Copy to - Commodore, Royal Navy.

Officer Commanding,

The Royal Air Force,

ΚΑΙ ΤΑΚ.

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(Copy.)

SECRET.

To:

Fervour.

From:

Troopers.

51235.

10/5

T.H. I. 1800

T.0.R. 0314

Your 4205 of 29/3.

We do not subscribe to bomb proofing of petrol reserves for Army purposes at Hong Kong. Dispersions of sn

small tanks splinter proof and incendiary bomb proof should

be policy for minimising risks. Letter follows on these

lines.

In view of above policy suggest A.P.C. will not

be attracted by any amount of money War Office can offer

and request you to inform company as to War Office policy

for protection of petrol reserves.

Re general policy for oil installations at Hong

Kong agree with you that A.P.C. would be well advised to

move into harbour area subject to naval concurrence but

must point out that chief danger is air attack and that degree

of A. A. protection afforded will be low.

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