X SECRET.
My Lord,
56078
4
4
GOVERNMENT HOUSE,
HONG KONG,
8th July, 1941.
(2)
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In reply to Your Lordship's secret/despatch of 10th March, 1941, enclosing a letter from the Admiralty regarding the transfer of two sites occupied by the new Naval Victualling Stores, I have the honour to enclose for Your Lordship's information a copy of the letter addressed by the Director of Public Works to the local Naval Authorities giving in full the terms proposed by this Government. The se terms were drawn up on the understanding that the buildings were to be considered as part of the permanent defences of the Colony and are in accordance with precedent.
2. If, however, the buildings are not to be retained for the permanent defences of the Colony, then I consider that the best solution would be, as originally suggested to the Naval Authorities, that the site be retained by the Naval Authorities on permit at an annual fee of $1.00 for the duration of the present European War plus an additional period of six months, when, if a further period of tenure is desired, fresh terms could be considered. This arrangement would mean that if the Naval Authorities did not desire a further period of tenure they would have to surrender the buildings without compensation. As the buildings are unlikely to be of any value to this Government, I regret that I cannot agree to pay compensation in respect of them.
3. The reservation of a twenty-foot strip on each site adjoining the main road is intended to provide for future road widening and I regret that I cannot agree to a permanent alienation of these strips of land, although full consideration to Naval requirements will be given in the event of road widening becoming necessary.
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I have the honour to be,
My Lord,
Your Lordship's most obedient, humble servant,
N.L. Smit
Colonial Secretary for Governor.
Copy to Adminalty (6)
THE RIGHT HONOURABLE
LORD MOYNE OF BURY ST. EDMUNDS, D.S.O.,
&c., &c.,
&C.