CO129-484 - Governor Sir Stubbs - 1924 [1-7] — Page 144

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has been considered from time to time; but, since the Works

were there before the development of the areas principally affected, it is very improbable that the Company could be compelled to move elsewhere without the payment of large sume in compensation for disturbance.

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The presert high values of land have,

however, provided an incentive to the Company to accept

the suggestion of the Government that the Works should be

moved to a position outside of the City; as the sale of

their present holding at Hung Hom will help largely to

provide the capital for the establishment of works properly

equipped with up-to-date machinery in a position where the

market value of the land is very much lower.

5.

As it is in my opinion very important to

seize the opportunity thus afforded of getting rid of this

long standing nuiamce I have, subject to your approval,

agreed to the sale by private treaty of an area of

approximately seventy six acres at Gin Drinkers' Bay in the

position marked "A" in the plan at the rates of premi tam and Crow rent subject to which land in the neighbourhood is being put up for sale by auction for industrial purposes. The conditions of sale will provide for the development of

the lot for the purposes of a cement factory within a specified time.

6.

I have also agreed provisionally to the

loan to the Company of a sum of £1,500,000 for the purposes of developing the area, repayable as funds become available

from the sale of the present site, and in any case within a period of five years. A condition of this loan, which the Company is prepared to accept, is that all the machinery required for the new works shall be of British

manufacture unless with the special consent of this

Government on the recommendation of the Director of Public

Works.

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