CO129-557-6 Tenure of lands held by War Department 16-1-1936 - 25-1-1937 — Page 24

2.

24

nclosure (2) (separately)

Retained in ço. 49/66

annum from 1st January, 1933. The claim has remained unsettled,

and it is not expected that the War Department will relinquish

this area until after at least four years from the present date. The Colonial Government's prospective claim in respect of the

whole period of occupati on therefore amounts to approximately

$1,000,000. In view of the difficulty which might be

experienced in effecting a settlement of a cash claim of such

magnitude I have considered it expedient to take advantage of an

opportunity now presented in the form of the War Department's

claim from the Colonial Government in respect of anti-malarial

works on the Kau Lung Tsai site, their estimate of the cost of

which is $975,000. My agreement with His Excellency the General

Officer Commanding accordingly stipulates that the Colonial

Government will waive all claims in respect of the rent of the Sham Shui Po site up to a maximum of $1,000,000, whilst in

return the War Department will bear the whole cost of the anti-

malarial works up to a maximum of $975,000 and of their future

maintenance.

3.

The extent of the area which it will be necessary

for the Military Authorities to purge, and to keep purged of

mosquito breeding grounds is shown by the red circle on a plan

(accompanying the map that is being sent you by safe hand), which

also shows the actual Cantonment site within a broad black line.

It is impossible to resist their claim that the work, if properly

carried out, will benefit the urban areas to the South, South-

East and South-West of the Cantonment and that a contribution

from the Colonial Government would therefore be fair and

reasonable. Rather than attempt an assessment of such

contribution on some changing factor, such as the civil

population of the environs, or to divide the work between the

Military and the Civil, I prefer to abandon the Colony's claim

for rent at Sham Shui Po and to saddle the War Department with