CO129-556-12 Naval Arsenal Yard- hand over to Hong Kong Government 4-2-1936 - 21-12-1936 — Page 27

ENCLOSURE No.3.

COPY.

No.H.K.0157.

27

Commodore's Office,

Hong Kong, 20th June,1930.

Your Excellency,

I have the honour to refer to my letter of the

1st November 1929, No.H.K.0157, and to previous correspondence on the subjects of (a) the removal of the Royal Naval Canteen to a new site, (b) the Arsenal Yard corner exchange and (c)

the transfer of the Royal Naval Arsenal Yard to Stonecutters

Island.

2.

The Admiralty have approved of the proposed

scheme for the transfer of the Royal Naval Armament Depot to

Stonecutters Island, provided that the Foreign Office,

Colonial Office and War Office concur, and I have been

directed to inform Your Excellency that on this understanding and subject to the following conditions, your predecessor's offer of $2,000,000 contained in his letter of the 22nd August 1929, No.3688/1928, for the surrender to the Colony

of the Naval Arsenal Yard and Kellet's Island is accepted :-

(i) Payment by the Colony to be made in four equal

instalments.

The Admiralty anticipate that the work will take

from three to four years from the date of

commencement, and, as much remains to be done

before drafts can be made, little work on the new site is likely during the present financial year. The Admiralty propose therefore that the

first instalment should be made on the 1st April

1931. This instalment will be $500,000 less

the amount of the payment mentioned in condition

(ii), below. The further instalments to be

made to coincide with the progress of the work,

at such dates as the Admiralty may desire, on