Sir,
Enclosure No. 2.
It will probably be within the knowledge
of Hon. Members that the Praya East Reclamation
scheme involves certain town planning operations in
the neighbourhood of Arsenal Street. The operations
in their turn involved the resumption of a corner of
the Naval Arsenal Yard and the reprovisioning of
certain naval buildings.
As the Praya East Reclamation progressed it
became evident that valuable buildings would be erected
in close proximity to the Naval Arsenal and the Naval
Authorities became concerned for the protection of
their Arsenal on the one hand and the safety of the
public on the other, and early in 1928 they suggested
that a zone 130 feet wide should be left unoccupied
on the East of the Arsenal Yard.
The proposal did not commend itself to the
Hong Kong Government and negotiations were set on foot which have culminated in a scheme approved by all
the Authorities concerned with the exception of this
Council whereby in return for a sum of $2,000,000 the
Admiralty will hand over to this Government the whole
of the Naval Arsenal Yard and Kellet Island.
sum of $2,000,000 is required to build Naval
magazines elsewhere in the Colony.
The
The proposal offers considerable advantages
to the Colony which will secure the removal of a serious danger from a thickly populated area, and will obtain a very v aluable site which will be developed in
accordance
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