CO129-577-3 Proposed transfer of military barracks to alternative site 30-1-1939 - 14-12-1939 — Page 24

24

3 -

Colonial Government agreed to waive its claim for

certain cash payments, then calculated at

$125,866, in respect of the Kau Lun: Tsai site as

a sole contribution towards the cost of

constructing certain roads which would be taken

over by the Colonial Government on completion.

The present position is therefore

a

that as the Military Authorities have not fully

carried out the settlement approved in 1937,

proportionate part of the Colonial Government's

claim for 125,866 which was set off against

the road construction, has revived. I have

accordingly addressed an enquiry to the Kilitary

Authorities as to what proposals they would wish

to put forward for the liquidation of their

remaining liability under this head.

5+

In this connection I would point out,

however, that in the view of the Colonial

Government it is not proper that the liquidation

of this remaining liability should take the form,

as suggested in the War Office's letter of 17th

August, 1939, of an adjustment in the Colonial

Military Lands Account. The agreement approved

in 1937 dealt with actual out-of-pocket expenses

,

incurred by the Colonial Government on resumptions,

formation costs, etc. which under the standing

arrangements relating to Military Lands, fell to be

refunded in cash by the Military Authorities, the

credit in the Colonial Military Lands Account

referring only to the site value of the Kau Lung

Now that the road construction which

Tsai area.

the Colonial Government expected in lieu of the

cash payments is not wholly forthcoming the claim

which revives is to cash and not to a credit.

6.

I have to request that you will be so

good as to communicate the Colonial Government's

views on this matter to the War Office.

I have the honour to be,

Sir,

Your most obedient, humble servant,

had - Northerto

Governor.

16

J

75