CO129-575-14 Naval Armament Depot- final payment of purchase price 15-3-1939 - 2-6-1939 — Page 8

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the Lords Commissioners of

Admiralty a copy of a despatch

from the Governor of Hong Kong

regarding the provision of funds

for the payment of the outstanding

balance of the final instalment due

to the adm silly

in connection with the transaction.

2.

As the S. of S. understands

that the matter of the aerial ropeway

has been finally disposed of he has,

,

subject to the approval of the Hong

Kong Legislative Council, given sanction

for a supplementary vote for $40,851.06

to cover the final payment due to the

Admiralty.

I am, etc.,

Page

Page

C.S.0.896/29c.

SECRET.

Dear Gent,

丛

MON

OROIT

Colonial Secretary's Office.

Hang ong.

22nd June, 1939.

Your letter of 2nd June, 1939, No.53533/39 regarding

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12/53547/36

the final payment to the Admiralty in respect of the transfer to

the Colonial Government of the former Naval Arsenal Yard.

As you know the correspondence regarding the ropeway was prolonged and

complicated. It was always the contention of the Colonial

Government that the Naval Authorities should be responsible for

the the removal of the ropeway and that Government retained from the

final instalment of $2,000,000 paid to the Admiralty a sum

representing the dollar equivalent of £5,000 as security for the

carrying out of the work. There then ensued a three-cornered

dispute between the Colonial Government, the Naval Authorities

and the Military Authorities. Correspondence with the Secretary

of State about this seems to have ended with Sir A. Caldecott's

secret despatch of 21st December, 1936, which left the matter

still in the air. In April, 1937, however, the local military

authorities notified the approval of the War Office to the removal

of the ropeway: I enclose copies of the further correspondence

exchanged on that occasion.

The Naval Authorities duly removed the ropeway in

September, 1937, and surrender of the property was taken on 20th

September, 1937: but application for payment of the balance of

purchase price was not made by the Naval Authorities until 4th

February this year.

Yours sincerely,

G.E.J.Gent, Esq., 0.B.E., D.S.O., M.C.,

Colonial Office,

LONDON.

5. Caive

age 9

Page

COPY.

SECRET.

Headquarters,

Page

C.R.C.C. No.X/11361/AQ

Your Excellency,

China Command.

Hong Kong.

10th April, 1937.

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I have the honour to refer to my letter number X/14349/AG

dated 7-12-36, and to previous correspondence on the subject of

the transfer of the Arsenal Yard by the Admiralty, to the Colonial

Government, and the handing over of Kennedy Road Magazines to the

War Department by the Admiralty.

I have now received from the War Office a cable to

inform me that my plans for the evacuation of Kelletts Island,

and the removal of the ropeway between the Arsenal Yard and

Kennedy Road Magazines are agreed to.

2.

The solution is to the effect that:-

(i) The War Department will provide road access to the

lower Magazine by improving the existing concrete track from

Queen's Road, and providing turning space for lorries at the

Magazine, and

(ii) The War Department will retain the portion of the

ropeway that runs from the lower Magazine to the upper Magazine

and Laboratory, and provide at the lower Magazine a ropeway

terminal suitable for the loading and unloading of shell from or

into lorries.

Under this arrangement the portion of the ropeway North

of Queen's Road can be dismantled as soon as the War Department

has completed the transfer to Kennedy Road Magazines of the ammuni-

tion at present stored at Kelletts Island, and of certain ammunition

which it has been found necessary to transfer from Lyemun. It is

anticipated that it will take approximately 14 days to effect

these transfers.

The dismantling of the above portion of the ropeway

will be a matter for the Naval Authorities and the Colonial

His Excellency,

The Governor,

Hong Kong.

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