CO129-523-7 Removal of Navy Armament Depot from Hong Kong to Stonecutters Island 6-2-1930 - 8-1-1931 — Page 27

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4.

I would therefore request Your Lordship's

authority to pay from surplus balances or loan funds

the sums of $763,741 in 1931 and $1,000,000 in 1932.

I consider that this is the proper procedure as it is

anticipated that this sum will be recovered by the sale

of the land evacuated within a few years.

5.

As regards the question of the removal of the

Royal Naval Canteen, which although separate has been

considered to have a bearing on the present matter, the Trustees have now agreed to the proposed figure of $154,090 as compensation for the existing buildings and

provision for this, with a statement of future requirements has already been made on page 85 of the Estimates for

1930, item 42.

6.

This matter has to a certain extent been

complicated by the necessity of considering the question

of removing the Military magazines; but my Executive

Council has agreed with me that this may be deferred

for the present although circumstances may necessitate the continuance of the present use of the Naval Magazine

at Kellett Island for the storage of Military ammunition

if it is found that the Military Magazines proper are

insufficient for the purpose. It will doubtless be

possible to arrange by mutual agreement the terms on which,

after the surrender by the Admiralty of the Kellett Island

magazine to this Government, its use by the Military

authorities may be continued.

7.