Secretariat file 897/45.

CONFIDENTIAL No. 221

GOVERNMENT HOUSE,

HONG KONG.

10thseptent

September, 1948.

7

1.

Sir,

I have the honour to inform you that Cable & Wireless Limited have applied for the grant by private treaty of an area amounting to approximately five and a quarter acres on Mount Butler on the Island of Hong Kong for the purpose of erecting a Wireless Receiving Station to be operated in conjunction with the Royal Navy. The area for which they have applied will be used to provide the receiver room, offices, stores, garages and staff quarters. In addition they have asked for permission to erect twenty-six self- supporting masts at various points outside the proposed leased area occupying a total of approximately 7,000 square feet, and to lay underground feeder lines to a total length of 3,460 feet.

2.

I propose, subject to your approval, to grant a twenty-one year renewable lease by private treaty on the following terms:-

3.

4.

(i)

(ii)

(iii)

(iv)

premium at $5,000 per acre approximately $26,250;

-

-

crown rent at $800 per acre per annum approximately

4,200 per annum.

Additionally, I propose to grant:

permission for masts and aerials over 7,000 square feet at 24 cents per square foot $1,680 per annum for the same period as the lease;

way-leave for cable which would be free, being subject to the discretion of the Director of Public Works.

Cable & Wireless Limited originally applied for a 25 year renewable lease, but since I saw no reason to diverge from the normal renewable period of twenty-one years I have secured their consent to the necessary amendment of their application,

5.

In their application Cable Wireless have asked for first option of a lease of the remainder of the 911 acres within which the wireless masts will be located, the option to be taken up within ten years. Their reason for withdrawing a previous application for the lease of the whole 811 acres is that they

Subject considered that the outlay on land would be too heavy.

to your approval, I am prepared to grant this option at a pranium of $5,000 but am advised that it should be expressed in two parts:-

6.

(a)

an option by Cable & Wireless to take up the whole area within ten years, subject to (b);

(b)

an undertaking by Government to offer first to Cable & Wireless, on the same terms as set out in paragraph 2, any portion Goverment wishes during that period to sell, and to sell elsewhere only if they do not wish to buy.

The granting of masts rights, rather than a lease of the whole area, will not facilitate further development of the site, otherwise than piecemeal, owing to the presence of the masts,

THE RIGHT HONOURABLE

ARTITUR CREECH JONES, M.P.

But on the other

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But on the other hand development on this hill site, although not outside the bounds of possibility, is unlikely to be practicable for some years and is in any case out of the question until at least an access road is provided. Cable & Wireless propose to construct such a road themselves.

7.

I should be grateful if you would intimate your approval of these proposals at an early date, if possible by telegraph, as Cable & Wireless are naturally anxious to have the question of the site settled so that they may proceed with the details of their plans.

I have the honour to be,

Sir,

Your most obedient, humble servant,

RECEIVED 18 SEP 1948

C.O. REGY.

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OFFICER ALINISTERING THE GOVERIMENT,

age 8

age 8

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