53654/41.

8

5 July, 1941.

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Sir,

I am directed by Lord Moyne to refer to War Office letters of No.119/Abroad/2493(L.B.) of 14th December 1939, and of the 10th September 1940 regarding the provision of land for War Department purposes in Hong Kong. The suggestion made in the two letters under reference was that in view of the present abnormal circumstances the Government of Hong Kong should allow the agreed arrangements relating to the acquisition by the War Department of the site of the new cantonment at Kau Lung Tsai, to remain undisturbed and should extend the rent free occupation of the site at Sham Shui Po until the situation has been reviewed after the termination of the war.

2. The Secretary of State has now been informed by the Governor of Hong Kong that the Colonial Government is prepared in the circumstances to allow the agreed arrangements in respect of the Kau Lung Tsai site to remain undisturbed until the termination of the war and similarly to extend the rent free occupation of the site at Sham Shui Po on the strict understanding that this site is vacated at the earliest possible moment after the cessation of hostilities. In the latter connexion it has been explained that the continued occupation by the Military authorities of this area, which was originally made available by the Colonial Government for temporary War Department use at a time of emergency in 1927, is seriously interfering with city planning and development which is a vital problem in a Colony where population is increasing with exceptional rapidity.

THE UNDER SECRETARY OF STATE,

WAR OFFICE.

M

In

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