Hong Kong
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p. 6.
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5. The interests of the Colonial Government in the two-fold question are understood to be four in number--
(1st.) By the formation of the Praya, to improve the means of communication between the east and west portions of the town, and to reclaim land that can be utilized for building purposes for the ever-increasing population.
(2nd.) To aid the War Department to dispose of some of the property held by them, and thus to further relieve the congested state of the town by throwing building land into the market.
(3rd.) To acquire a portion of the land the War Department is prepared to dispose of for Colonial Government purposes, viz., the erection of buildings and the formation of roads.
(4th.) To diminish as far as possible the colonial share of excess expenditure on barracks.
6. These being the several interests involved, it remains to enumerate the obstacles to their satisfaction, and to consider how they may best be removed.
7. With regard to the disposal of War Department lands, the greater portion that the War Department is prepared to part with consists of Crown land which has been granted by the Governor of the Colony for military purposes.
With regard to this portion, the Colonial Office, as advocate for the colony, argues that the colony has reversionary rights which should be taken into account.
These lands, however, come under paragraph 58, of Section V., of the Report of the Committee on Colonial Military Contributions, "Colonial Military Lands and Buildings," which section has been approved by the Treasury; and they should therefore be dealt with accordingly, that is to say, their value should be settled as therein directed, and the Colonial Government should either pay that value and retain the lands, or else should sell them, the value or the proceeds of sale, as the case may be, being made available for the provision of other lands and buildings for military purposes in the colony.
No reversionary right therefore on the part of the colony, but only a pre-emption right, is recognised and this is but reasonable; for there is certainly no obligation on the War Department to part with the lands at all. This is especially the case with regard to these properties in Victoria, for the proposal that the War Department should part with them was originated by Sir George Phillippo, representing the colony, at meetings at the Colonial Office, in January 1888, at which the War Department and the Admiralty were also represented, the grounds assigned for the proposal being the congested state of the town of Victoria, and the desire of the Colonial Government to relieve it as far as possible by the operation.
8
1100
8. With regard to one property in Victoria proposed to be parted with - viz., that known as the Commissariat Buildings, or Lot 22, the War Department occupy a different position, having acquired by purchase, in 1862, the residue of a lease of the property for 75 years, expiring in 1919. But, in accordance with a notification published in the Hong Kong Government Gazette of 3rd March 1849, applicable to all such leases in Victoria, the War Department has the right to extend the lease to complete a total term of 999 years. The reversionary rights of the colony in this case therefore have no substantial value; and on the lease being thus extended, the War Department could sell the property without question for what would practically be the value of the fee simple.
9. With regard to the rest of the property to be disposed of in Victoria, with the exception of Spring Gardens, the residue of the 999-year lease of which was purchased by the War Department in 1857, it is conceded that the War Department could not sell it without the intervention of the Colonial Government, as laid down in paragraph 58, of Section V., of the Report of the Committee on Military Contributions, already referred to.
77
440
2 4800, 4310,
10. The requirements of the Admiralty next have to be considered. They ask for the refusal of the whole of the North Barrack property; but the Colonial Government wish to purchase a portion of this property for their own purposes. The War Department accordingly suggested to the Admiralty that they should have the refusal of the remainder of the North Barrack property, which flanks the naval yard on one side, and of the greater part of the commissariat buildings which flanks it on the other, the remaining portion, a strip 15 feet in width, being sought by the Colonial Government for the formation of a road.
8 1226
At a conference, on 12th September 1889, between Major-General Percy Smith, Director of Works, on behalf of the Admiralty, and Colonel Locock, Deputy Inspector-General of Fortifications, on behalf of the War Department, the former was informed that whatever property the Admiralty acquired from the War Department they would have to pay for.
11. As far, therefore, as the disposal of War Department property in Victoria is concerned, the matter is not difficult to arrange.
2 4303
The property should be valued, subject to such restrictions as to the erection of Chinese dwellings as the Secretary of State for War is bound to insist upon for the sake of the health of the garrison; the Colonial Government and the War Department should agree to give the Admiralty the refusal at market prices of the portions mentioned above of the North Barracks property and of the commissariat buildings; the Colonial Government should pay the market value of the portions they wish to retain for colonial purposes; the rest should be sold in the open market, subject to the stipulated restrictions as to the erection of Chinese dwellings; and the total proceeds should be devoted towards the provision of the new barracks required for the increased garrison.
If there is anything in the colonial ordinances or customs, unknown to the War Department, which would prevent the Colonial Government realising the full value of such property as they might sell in the open market, the War Department could carry out that part of the transaction, the Colonial Government undertaking to give to the purchasers the customary 999-year leases.
The requirements of the War Department would thus be met, the Admiralty would secure the power of lateral extension of their naval yard, and the Colonial Government would satisfy the 2nd, 3rd, and 4th of their interests enumerated in paragraph 5.
Failing such an arrangement, none of these several interests can be satisfied, and all three parties would suffer loss.
and
1207
12. Thus far, therefore, the matter is simple. It is, however, complicated by the question of the Praya.
This question has been under discussion for the last 10 years, culminated in a proposal from the Colonial Government, dated 15th January 1889, the main feature of which was that the War Department and the Admiralty should respectively pay for the cost of constructing the Praya in front of the properties held in Victoria by them, and that they should acquire in return the land reclaimed thereby in front of those properties. The Colonial Government also forwarded plans of the proposed Praya, which had been prepared so as to meet the requirements of the Navy.
13. It is understood, as already stated in paragraph 4, that the Admiralty have informed the Colonial Office that they are willing to agree to the formation of the Praya, but not to contribute towards its cost.
14. The War Department have informed the Colonial Office that they also were unable to contribute towards the cost of the Praya, and pointed out that the plan for its formation would require some modifications in order to meet their requirements; and they made a counter-proposal that the Colonial Government should retain the land that would be reclaimed by the Praya in front of the North Barracks, which reclamation was valued by the Surveyor-General of Hong Kong to be worth more than the sum the Colonial Government had invited the War Department to contribute; and that in consideration of this, the Colonial Government should defray the cost of the formation of
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Hong Kong
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p. 6.
40248 200
6
5. The interests of the Colonial Government in the two-fold question are understood to be four in number--
(1st.) By the formation of the Praya, to improve the means of com- munication between the east and west portions of the town, and to reclaim land that can be utilized for building purposes for the ever increasing population.
(2nd.) To aid the War Department to dispose of some of the property held by them, and thus to further relieve the congested state of the town by throwing building land into the market. (3rd.) To acquire a portion of the land the War Department is prepared to dispose of for Colonial Government purposes, viz., the erection of buildings and the formation of roads. (4th.) To diminish as far as possible the colonial share of excess
expenditure on barracks.
6. These being the several interests involved, it remains to enumerate the obstacles to their satisfaction, and to consider how they may best be removed.
7. With regard to the disposal of War Department lands, the greater portion that the War Department is prepared to part with consists of Crown land which has been granted by the Governor of the Colony for military
purposes.
With regard to this portion, the Colonial Office, as advocate for the colony, argues that the colony has reversionary rights which should be taken into account.
These lands, however, come under paragraph 58, of Section V., of the Report of the Committee on Colonial Military Contributions, "Colonial Military Lands and Buildings," which section has been approved by the Treasury; and they should therefore be dealt with accordingly, that is to say, their value should be settled as therein directed, and the Colonial Government should either pay that value and retain the lands, or else should sell them, the value or the proceeds of sale, as the case may be, being made available for the provision of other lands and buildings for military purposes in the colony.
No reversionary right therefore on the part of the colony, but only a pre- emption right, is recognised and this is but reasonable; for there is certainly no obligation on the War Department to part with the lands at all. This is especially the case with regard to these properties in Victoria, for the proposal that the War Department should part with them was originated by Sir George Hong Kong Phillippo, representing the colony, at meetings at the Colonial Office, in January 1888, at which the War Department and the Admiralty were also represented, the grounds assigned for the proposal being the congested state of the town of Victoria, and the desire of the Colonial Government to relieve it as far as possible by the operation.
8
1100
8. With regard to one property in Victoria proposed to be parted with- viz., that known as the Commissariat Buildings, or Lot 22, the War Department occupy a different position, having acquired by purchase, in 1862, the residue of a lease of the property for 75 years, expiring in 1919. But, in accordance with a notification published in the Hong Kong Government Gazette of 3rd March 1849, applicable to all such leases in Victoria, the War Department has the right to extend the lease to complete a total term of 999 years. The reversionary rights of the colony in this case therefore have no substantial value; and on the lease being thus extended, the War Department could sell the property without question for what would practically be the value of the fee simple.
9. With regard to the rest of the property to be disposed of in Victoria, with the exception of Spring Gardens, the residue of the 999 year lease of which was purchased by the War Department in 1857, it is conceded that the War Department could not sell it without the intervention of the Colonial Government, as laid down in paragraph 58, of Section V., of the Report of the Committee on Military Contributions, already referred to.
77
440
2 4800, 4310,
10. The requirements of the Admiralty next have to be considered. They Hong Kong ask for the refusal of the whole of the North Barrack property; but the Colonial Government wish to purchase a portion of this property for their 4314, 4341 own purposes. The War Department accordingly suggested to the Admiralty that they should have the refusal of the remainder of the North Barrack property, which flanks the naval yard on one side, and of the greater part of the commissariat buildings which flanks it on the other, the remaining portion, a strip 15 feet in width, being sought by the Colonial Government for the formation of a road.
8 1226
At a conference, on 12th September 1889, between Major-General Percy Hong Kong Smith, Director of Works, on behalf of the Admiralty, and Colonel Locock, Deputy Inspector-General of Fortifications, on behalf of the War Department, the former was informed that whatever property the Admiralty acquired from the War Department they would have to pay for.
11. As far, therefore, as the disposal of War Department property in Victoria is concerned the matter is not difficult to arrange.
2 4303
The property should be valued, subject to such restrictions as to the erection of Chinese dwellings as the Secretary of State for War is bound to insist Hong Kong upon for the sake of the health of the garrison; the Colonial Government and the War Department should agree to give the Admiralty the refusal at market prices of the portions mentioned above of the North Barracks property and of the commissariat buildings; the Colonial Government should pay the market value of the portions they wish to retain for colonial purposes; the rest should be sold in the open market, subject to the stipulated restrictions as to the erection of Chinese dwellings; and the total proceeds should be devoted towards the provision of the new barracks required for the increased garrison.
If there is anything in the colonial ordinances or customs, unknown to the War Department, which would prevent the Colonial Government realising the full value of such property as they might sell in the open market, the War Department could carry out that part of the transaction, the Colonial Govern- ment undertaking to give to the purchasers the customary 999 year leases.
The requirements of the War Department would thus be met, the Admiralty would secure the power of lateral extension of their naval yard, and the Colonial Government would satisfy the 2nd, 3rd and 4th of their interests enumerated in paragraph 5.
Failing such an arrangement, none of these several interests can be satisfied, and all three parties would suffer loss.
and
ઈં
1207
12. Thus far, therefore, the matter is simple. It is, however, complicated by the question of the Praya.
This question has been under discussion for the last 10 years, culminated in a proposal from the Colonial Government, dated 15th January Hong Kong 1889, the main feature of which was that the War Department and the Admiralty should respectively pay for the cost of constructing the Praya in front of the properties held in Victoria by them, and that they should acquire in return the land reclaimed thereby in front of those properties. The Colonial Government also forwarded plans of the proposed Praya, which had been prepared so as to meet the requirements of the Navy.
13. It is understood, as already stated in paragraph 4, that the Admiralty have informed the Colonial Office that they are willing to agree to the formuation of the Praya, but not to contribute towards its cost.
14. The War Department have informed the Colonial Office that they also were unable to contribute towards the cost of the Praya, and pointed out that the plan for its formation would require some modifications in order to meet their requirements; and they made a counter-proposal that the Colonial Government should retain the land that would be reclaimed by the Praya in front of the North Barracks, which reclamation was valued by the Surveyor- General of Hong Kong to be worth more than the sum the Colonial Govern- ment had invited the War Department to contribute; and that in consideration of this, the Colonial Government should defray the cost of the formation of
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