CO129-248 - Public Offices & Others - 1890 — Page 444

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the Praya in front of all the water frontage in Victoria held by the War Department, while the latter should receive the rest of the land reclaimed thereby.

This counter-proposal was intended and is believed to be more favourable to the Colonial Government than the proposal they themselves made to the War Department in their letter of 15th January 1889, before alluded to, and addressed to the Colonial Office,

15. The Colonial Office has not yet forwarded to the Colonial Government the counter-proposal of the War Department, but has, in a letter of 4th March 1890, raised certain questions as to the right and powers of the War Depart- ment to sell the property held by them in Hong Kong, and as to their right to the land that will be reclaimed in front of their property, and as to the value of such reclaimed land.

Some of these questions are dealt with in paragraphs 7, 8, 9 and 11, and without answering the others in detail, the effectual arguments in reply are-- that it is the colony, and not the War Department, that wishes for the extension of the Praya, as already set forth in paragraph 3; and that the counter- proposal by the War Department claims nothing that the Colonial Government has not already offered.

16. If the Admiralty could decide definitely to concentrate all their establishments at Kowloon, the Praya question would lie chiefly between the War Department and the Colonial Government, and could probably be settled without much difficulty.

17. But in default of such a decision on the part of the Admiralty, it remains essential to meet their possible requirements in Victoria.

This could be done if the three following agreements could be entered into:--

(1st.) The War Department to agree to sell to the Admiralty at market value, together with the greater part of the com- missariat buildings, the reclamation in front thereof, with the exception of a strip on the east side 15 feet wide, which the Colonial Government would receive for the formation of a road.

(2nd.) The Colonial Government to agree to sell to the Admiralty at market value, together with part of the North Barracks property, the reclamation in front of that part.

(3rd.) The Admiralty and Colonial Government to agree to share the cost of the formation of the Praya, in front of the naval yard, and of the works consequent thereon, in such proportion as may be determined between them.

18. It is true that at present the Admiralty have demurred to bearing any portion of this cost; but if it is essential for them to obtain the land for the extension of the naval yard, it appears only reasonable that they should pay something for it. The colony would obtain the completion of the Praya, the Admiralty would obtain the proposed basin, with water access to the harbour, and a quantity of reclaimed land for the extension of the naval yard. It is unreasonable that either should pay the whole cost, and the proportion in which it should be divided is a matter for adjustment.

In this manner the questions of the disposal of War Department property in Victoria and of the extension of the Praya could be settled in a manner that would, it is believed, be fair and satisfactory to the three parties concerned.

19. Plans illustrating the questions for discussion are annexed, and also some memoranda bearing thereon.

Correspondence bearing on the questions since January 1888 is given in the Appendix.

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APPENDIX.

REPORT of the Committee on Colonial Military Contributions, Section V., dated 27th March 1889.

58. In colonies garrisoned by Imperial troops, when military lands or buildings, other than such as may have been purchased and paid for by the Imperial Government, are no longer required for military service, either immediately or prospectively, the Committee recommend that they should be surrendered to the Colonial Government, subject to the following conditions ---

(1.) If the colony wishes to retain them for civil purposes, their value should be settled by agreement between the local, civil, and military authorities,

or by competent surveyors, as may be considered most desirable.

"Where other lands or buildings for the garrison have to be provided, the agreed value of the surrendered lands or buildings should be con- tributed by the colony towards the cost of providing the new lands or buildings.

If no such new lands or buildings are required at the time, the value of the surrendered lands or buildings should be retained by the Colonial Government until other lands or buildings are required for the garrison, when the value of the surrendered lands and buildings should be contributed by the colony towards their costs.

(2.) If the colony does not wish to retain the lands or buildings, they should be surrendered by the military authorities to the Colonial Government for sale, the proceeds of the sale being dealt with in the same manner as provided for in the case of the value of lands retained by the colony, ie.. if other lands or buildings are being provided for military purposES, the suma realized should be taken in aid of their cost; and if no such lands or buildings are required at the time, the sums realized should be retained by the Colonial Government, and be available at any subse- quent period, when other lands or buildings may be required for military purposes.

61. When lands or buildings in a colony have been purchased and paid for by the Imperial Government, their value, when sold or transferred, should be credited to Imperial revenues.

REPORT of the Committee on Colonial Military Contributions, Section IV., dated 27th July 1888.

31. In consequence of the increase to the garrison recommended by the Colonial Defence Committee, it will be necessary to provide additional accommodation at Hong Kong for a force of about 1,500 of all runks, or for double the existing garrison. The rough preliminary estimate of its cost is 212,000l., but it is possible that this may be exceeded.

32. In connection with the scheme for providing this accommodation-though forming no necessary part of it-there is a proposal under consideration for surrendering to the colony certain sites in the town of Victoria, which are stated to be of great com- mercial value, and for constructing barracks and military buildings elsewhere to replace those thus surrendered.

33. The cost of the barracks, say 212,0007, would be then augmented to about 262,000, but the value of the surrendered sites would be set off against this, say 140,000, leaving a balance of about 122,0002 to be provided. The finance of this scheme has not yet been sufficiently worked out to enable the Committee to say what the total not charge will finally be, nor, consequently, what the exact charge to limperial and Colonial revenues will be.

34. After devoting the realized or estimated value of the surrendered sites to the provision of the required accommodation for the garrison, the Committee consider that

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