No. 436.

AIR MAIL.

Sir,

GOVERNMENT HOUSE,

HONG KONG.

30th May, 1938.

I have the honour to address you regarding

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the grant of compensation to the Royal Hong Kong Yacht Club for the buildings which will be surrendered to the

Government on the transfer of their lease from the

present site at North Point to Kellett Island.

2.

Reclamation of land in front of the present

site of the Yacht Club on Marine Lot No.290 has rendered

that site unsuitable, and the Club applied for a lease

of Kellett Island, which has been surrendered to this

Government by the Naval Authorities. After negotiations

extending over several years the transfer of the lease

from Marine Lot No.290 to Kellett Island has now been

approved on the terms and conditions set out in a letter

dated 1st of March, 1938, to the Yacht Club a copy of

which is attached, and these terms and conditions have

been accepted by the Club.

3.

In order to provide compensation for the

buildings erected by the Club on Marine Lot No.290, which

will be surrendered to this Government and will be used

as quarters, offices and stores by the Public Works Department, I have authorized, subject to your approval,

the offer of $30,000 to the Club, although in fact by

the

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&C.,

&C.,

&C.

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