CO129-538-6 Naval Armament Depot- correspondence 19-6-1931 - 31-3-1933 — Page 49

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Encl. No.2.

by the Director of Public Works and Land Officer to

investigate this possibility. As a result tentative

suggestions were put forward which would involve, if

adopted, the transfer to the War Department of a

comparatively small area of the Arsenal Yard and the

removal of the ropeway to Military Land at a cost estimated

at £5,000. Alternative proposals are shown on the plan

already referred to. In this connection I enclose a

copy of a secret letter from the General Officer Commanding

the British Troops in China dated the 26th of June, 1931.

6. I consider that in return for the payment of

$2,000,000 the Hong Kong Government is entitled to obtain

delivery of the Naval Arsenal Yard free of encumbrances.

The question now arises as to who shall pay for the removal

of the ropeway.

The General Officer Commanding the

British Troops has intimated that he is not prepared to

recommend that this work should be done at the expense of

the War Department and the local Naval Authorities seem

disinclined to take any action in the matter.

There

does not seem to be any good reason why the acquiescence

of the Naval Authorities in the continued user of the

ropeway by the Military Authorities after the transfer of

the Yard to the former should involve the Colonial

Government in payment of the cost entailed by the diversion

of the ropeway or in the loss of the value of such land as

may be required for that purpose and it would seem logical

that the cost should be deducted from the price payable to

the Naval Authorities. I therefore seek your authority

to deduct the cost of removal from the last instalment of

$500,000 due from this Government to the Admiralty in 1933

and

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