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"erected at Colonial cost it would only be necessary to
"record the value of the site. The mounts so entered
"would be paid out as required for the provision of the
"lands or buildings for the defensive purposes of the
"Colony, and the amounts, as in the case of male,
"credited to the Colonial Government, the like credit
"being given in the event of new sites being provided
"on Crow Lands. Should no new lands or buildings be
"immediately required the amounta entered would remain
"to the debit of the Colonial Government until mich
"time, if ever, as lands or buildings should become
"necessary for defensive purposes".
3. The land most urgently required by this
Goverment is that in the centre of the City of Victoria
and the site of whitfield Barracks at Kowloon; and I understand that the Military Authorities would be prepared to give up the areas shown in the enclosed schedule, on the understanding that the lar Office will adhere to the policy agreed upon of stationing the greater part of the parrison on the mainland.
4. The schedule sets out the value per square foot of owah aren as nettled at the informal discussions which have taken place. The figures include the value of the buildings upon the land. These are not required by this Government, and it is obvious that from a commercial point of view the land cleared of the buildings in wich more valuable than the land mibject to the condition that the building are to remain. It is provided in the Circular despatches referred to that values may be settled by agreement between the local Civil and Military Authorities. I consider that the rates per square foot are reasonable and fair to both sides; and, if you are prepared to accept them, I propose that their finel adoption should be recommended to the War Office and the
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