CO129-552-5 Naval Armament Depot- surrender of Arsenal yard to H.K. Government 2-2-1935 - 26-11-1935 — Page 24

G/T/E:CA

896/29.

sir,

22nd May, 1935.

24

With reference to your letter No.H.K.548

of 4th May, 1935, on the subject of the re-allocation to

the Admiralty of a portion of the Royal Naval Armanent

Depot, I have the honour to inform you that, subject to

the approval of the Secretary of State for the Colonies,

this Goverment would be willing to re-allocate to the

Admiralty a portion of the area in question on terms to be

mutually agreed.

The proportionate price of the area

coloured red in the plan enclosed with your letter to the

price, $2,000,000, paid to the Naval Authorities for the

whole area surrendered to this Government would be $360,360.

In addition to this there would have to be added the

proportionate part of the total amount of interest lost to

Goverment on the monies paid by it for the whole area,

This total amount taken at simple interest per annun

from the different dates of payment to 31st May, 1935, comes

to $208,218 for the whole area, and to $37,517 for the red

area. The total sum payable on 31st May, 1935, by the

Naval Authorities for the red area would therefore be

$397,877 ($360,360 - $37,517). The amount of the interest

payable would be recalculated to date of payment.

The Commodore in Charge,

Hong Kong