CO129-561-11 Proposal that military authorities should undertake anti-malarial work in return for exemption from rent claim... 23-3-1937 - 4-8-1937 — Page 12

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Colonial Government to complete the anti-malarial

works, if they should cost more than $975,000, but

to fix a top limit to the amount of Military

expenditure necessary to qualify for our waiver of

rent on the Sham Shui Po, site. Any additional

expenditure would be outside the four corners of the present agreement and, if the Colonial Government

were asked to contribute towards any excess, the

terms and conditions of such contribution would need

to be separately agreed. The present Agreement only goes so far as to provide that if the Military shall have spent $975,000 on the capital cost of anti-malarial

works the Colonial Government will not be in a position

to withdraw its waiver of rent on the ground that the

works are incomplete. I do not myself anticipate

that the estimate of $975,000 will be exceeded nor,

in view of the fact that under the agreement their

future maintenance will be a Military liability,

should I regard the agreement as unduly favourable

to the Military if in the event the anti-malarial works should be found to cost less than $975,000.

4.

In the light of the preceding paragraph

the stipulation suggested in your fifth paragraph (that the Colonial Government will not be liable for any cash outlay on the completion of the anti-malarial works until the completion of the transfer to them of the Sham Shui Po site) will be seen to be unnecessary.

No such liability indeed arises under the present

provisional agreement.

5.

I have inferred from the phrase "the road

system on the Kau Lung Tsai area", occurring in the last sentence of your despatch, that the map which I