CO129-572-15 Proposal that Asiatic Petroleum Company should erect new installations within defence boundary 11-4-1938 - 7-6-1938 — Page 2

CIP.

1. Gov. Sec

L.

See enc.2.

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11·4.38

s4o. of correct for information 2

At the instance of the G.0.C. the Petroleum

Company have been asked to consider moving their oil

installation from Tsun Tan, which is outside the

defence boundary, to Yau Tong, which is within the

defence ring. It is mainly a defence matter, but the

Colonial Government are concerned in that if the

change were to take place the Company would require

either them or the W.Ü. to make some financial

contribution to cover the cost. This would include:-

(a) the extra cost of the land at Yau Tong,

which is near to the harbour and therefore more

expensive,

(b) the taking over of the Company's contract

at Tsun Wan, which will apparently amount to

approximately $429,000.

(c) the provision of road communication between

Kowloon and Yau Tong, which will not apparently raise

any difficulty from the point of view of Government.

There is also the risk to shipping from fire

if the oil installation at Yau Tong were to be

exploded, while the anchorage for dangerous goods

lies close to the site.

The matter is only in a provisional stage,

nowever, and no course of action has been proposed by

the G.0.C.. The W.0. have, maneter, been asked if

tney will give some financial assistance, and I think

that we may wait for their proposals before making any

and a lot Meanwhile I suggest that we might copy the

despatch and first enclosure to the W.0. lf, reference

enclosure 2.

comment.

P

RogeD

مل

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Smith 25/14/38. Mulder .38

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