CO129-488 - Governor Sir Stubbs - 1925 [1-7] — Page 308

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this direction and that it would be politic for them to do

so as unquestionably the intense and universal irritation

against the Tar Office which has been caused by their

policy in the matter of the military lands is doing harm

to the reputation of His Majesty's Government among the Chinese community and is likely to be detrimental to the interests of the military in the future. A further point is that the powers of compulsory acquisition which would be used if these lands were in private possession cannot

be employed in respect of land held by the military. We

cannot, therefore, take over the land at a price fixed by the usual arbitration tribunal but, if we have to pay, must

pay the price put upon it by Sir John Oakley at the time of

a land-boom which is now entirely over. There can be no

doubt whatever that any arbitration tribunal now would

assess the land in question at only a fraction of the value

placed upon it by Sir John Oakley.

I would urge that this question be

reconsidered on broader lines.

4. As regards the question of housing

accommodation, referred to in paragraph 4 of the War Office letter, there should be no difficulty in securing adequate accommodation but the proviso that the rents to be paid

shall be commensurate with the rents now being paid for the

houses at present occupied' requires some elucidation. Renta

would have risen continuously if they had not been

restricted by the Rents Ordinance which I hope will come to an end next year, and it is obviously impossible to

guarantee that houses will be available in the future at

the rents payable in 1920 (which is the figure to wich

they are limited by the Rents Ordinance.) We can, I think,

guarantee that suitable accommodation will be available at

rentals which are fair for that class of property and I have

in