CO129-556-12 Naval Arsenal Yard- hand over to Hong Kong Government 4-2-1936 - 21-12-1936 — Page 2

dir

1 Gor Leaut

4

236

of

Descusses at length the

question of

the surrender to Col: fort of the Naval Arsenal Yow.

C

The stk. Soot evergetically rebut the

suggestions

made in the wo letter to the

Admirally end. in (11) on

tee

53577/35; that

Continued necessity for the ropeway

due to the Colonial Eovernment's failure to provide alternative accommodation for

is

the military arsenal,

and

That the

$2.000.000 payments to the Admiralty

represented, not

the value of the

tite

'The site to the

IMC. Goot, but the cost of reproviding

The Navy elsewhere.

? copy desp, rewell to Momivally,

with fun this refer to (13) on 53547/25, in a secret letter saying that

this S.f5. Concurs in the statement of the position contained

Therein

;

suggesting that

further conson of the matter be deferred

pending

the outcome of

the