CO129-572-15 Proposal that Asiatic Petroleum Company should erect new installations within defence boundary 11-4-1938 - 7-6-1938 — Page 18

Enclosure No.2.

18

SECRET.

TO: TROOPERS.

FROM:- FERVOUR HONG KONG.

No.

26/3.

Please refer to 99083 dated 13/1/1937 and subsequent

correspondence. Proposal now being examined by A. P. C. for transferring projected installations from TSUN WAN to YAU TONG WAN just inside LYEMUN entrance because this latter site located

within defence ring. A.P.C. prepared to consider building bomb

proof tankage to meet our Mainland requirements provided extra cost of bomb proofing up to amount War Office prepared to spend on independent military storage is contributed by War Office, also provided local Government offer assistance in construction road along North side of Harbour from KAI TAK to YAU TONG WAN. There are advantages in these proposals both from point of view of Peace time supply and added road communication within defence

ring. Considerable reclamation by A.P.C. will be necessary

but if general scheme decided on that portion required by Army

can, it is believed, be built within two years of decision. It

is understood that the proposal would also interest R.N.

possibly R.A.F. Will you therefore, decide if worth while to reverse previous decision conveyed in War Office letter No.

083/5984 (M.0.2) dated 15th June, 1937, and to encourage A.P.C.

to proceed with examination on understanding that some financial

assistance by War Office as outlined above will be forthcoming.

Cipher Officer.

Hong Kong.

28/3/1938.

C.R.C.C. X/14870. (G).

For despatch in cipher please.

N.M.S. Irwin,

Colonel, GENERAL STAFF.

Copy to: Hon. Colonial Secretary.