CO129-523-7 Removal of Navy Armament Depot from Hong Kong to Stonecutters Island 6-2-1930 - 8-1-1931 — Page 39

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The payment of the foregoing sur does not necessarily involve inmediate removal of the buildinge in question nor the giving up posɛersion of the ares coloured yellow forthwith. These may remain as they are, pending settlerent of the removal of the Arsenal establishment, to which I shall refer later on; this temporar, posseɛtion by you can be regularised by a formal permit if you so desire. It is, however, essential for the reasons stated above, that thie Government should now as soon at possible what the cost of this transaction will be.

2.

NAVAL ANCONAL. This is a larger question, with which the foregoing natteru are, to a certain extent, connected. The proposal is that the Admiralty shall surrender the Arsenal Yard and Zellett Island to the Colonial Government on payment by this Government of a sum sufficient to enable the admiralty to find another site and erect new buildings for the storage of Javal explosives.

I propose that a sum of $2,000,000 shall be paid to the Admiralty by the Colonial Government for surrendering the Arsenal Yard and Kellett Island by four equal half yearly instalments, the first instalment to be paid on the expiration of six months from the conclusion of the agreement for evacua- tion, and that evacuation shall be completed and the two areas currendered to the Colonial Government as soon as the finel instalment shall be paid.

If you are prepared to recommend these proposals for the favourable consideration of the admiralty, I will submit them to the Secretary of State for the Colonies.

I have the honour to be,

sir,

Your rost obedient servant,

(DGD) 0.00SLANTI.

Governor, &c.