CO129-411 - Governor Sir May - 1914 [5-7] — Page 475

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settled because the Military Lands Account now shows a debit That account was opened in against the Colonial Government.

1895 and notwithstanding the terms of Mr. Chamberlain's despatch above referred to it was agreed in the Lewis Memorandum (page 8 paragraph 15) that all lands referred to in the Memorandum were to be treated as matter of account and that cash payments were not to be required. The only now land since acquired by the War Department is the site of Mount Devis Battery for which the Colonial Goverment was credited with $164,844 in the Lands Account. Owing to the relinquishment by the War Department of the Ngau Tau Kok Reserve and the barrack sites included in that area the acount now shows a debit balance against the Colonial Government. At the present time the War Department require land at Kowloon for barracks which owing to the want of Crown land in suitable positions must be purchased from private owners and application has already been made to me to purchase this

land for the War Department.

The Colonial Government on the other hand requires certain areas of War Department land no longer used for defence purposes concerning which I am about to address you. If these transfers are sanctioned the debit of the Colonial Government will be further increased, and it is therefore desirable that the question raised in this despatch should be settled in order that the Colonial Government may not be preju- diced by the creation of Military Reserves at nominal rentals.

I have the honour to be,

sir,

Your most obedient,

humble servant,

7-x

Governor,&c,