CO129-498-10 Transfer of military land to the Colonial Government 12-3-1926 - 12-3-1926 — Page 6

Memorandum.

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In 1920 the Government of Hongkong approached the Military Authorities with a view to the removal of the military establishments in Victoria and Kowloon, which were situated in the midst of valuable business areas, to more suitable sites. The Army Council raised no objection from a military point of view, but asked that the arrangements for redistribution should provide for any expansion of the garrison that might be decided upon.

There was considerable discussion locally

between the Governor and the General-Officer-Commanding the

Troops as to the valuation of the military establishments

to be surrendered.

Eventually a valuation of $11,291,446

was agreed upon between them, and no objection was raised by the G.0.C. to the Governor's proposal that the sum of £114,317. 18. 9 representing overpaid Military Contributions should be set off against the $11,291,446.

The Army Council, however, considered that the local valuation, though an agreed one, was too low, and asked, in view of the magnitude of the transaction, for a valuation by an independent surveyor. They also stated that as the transfer was taking place at the request of the Colony and not for any military reasons, they would feel justified in claiming the whole cost of reprovision of military needs, even if it exceeded the full amount standing to War Department credit as a result of the trans- fer.

The War Office proposals were vigorously opposed by the Governor who urged that the Circular of 30th December,1894, only provided for an independent valuer in case of disagreement between the Colonial and Military authorities, and that in view of the fact that the local valuation was concurred in by the G.0.C. there was

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