24
3 -
Colonial Government agreed to waive its claim for
certain cash payments, then calculated at
$125,866, in respect of the Kau Lun: Tsai site as
a sole contribution towards the cost of
constructing certain roads which would be taken
over by the Colonial Government on completion.
The present position is therefore
a
that as the Military Authorities have not fully
carried out the settlement approved in 1937,
proportionate part of the Colonial Government's
claim for 125,866 which was set off against
the road construction, has revived. I have
accordingly addressed an enquiry to the Kilitary
Authorities as to what proposals they would wish
to put forward for the liquidation of their
remaining liability under this head.
5+
In this connection I would point out,
however, that in the view of the Colonial
Government it is not proper that the liquidation
of this remaining liability should take the form,
as suggested in the War Office's letter of 17th
August, 1939, of an adjustment in the Colonial
Military Lands Account. The agreement approved
in 1937 dealt with actual out-of-pocket expenses
,
incurred by the Colonial Government on resumptions,
formation costs, etc. which under the standing
arrangements relating to Military Lands, fell to be
refunded in cash by the Military Authorities, the
credit in the Colonial Military Lands Account
referring only to the site value of the Kau Lung
Now that the road construction which
Tsai area.
the Colonial Government expected in lieu of the
cash payments is not wholly forthcoming the claim
which revives is to cash and not to a credit.
6.
I have to request that you will be so
good as to communicate the Colonial Government's
views on this matter to the War Office.
I have the honour to be,
Sir,
Your most obedient, humble servant,
had - Northerto
Governor.
16
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75