CO129-588-12 Military lands- arrangements for war period 20-2-1941 - 30-8-1941 — Page 16

XXX CONFIDENTI AL.

53654/41

- 5 MAY 1941

C. U. REGY

16

zo

GOVERNMENT HOUSE,

HONG KONG.

13th February, 1941.

My Lord,

18mm

30m

1 on

I have the honour to refer to Mr. Malcolm MacDonald's

39 confidential despatch of 1st February, 1940, transmitting for

the observations of this Government a copy of a letter from the 1600

'39 War Office dated 14th December, 1939, and to Lord Lloyd's

confidential despatch of 9th October, 1940, transmitting for the

observations of this Government a further letter from the War

Lo Office dated 10th September, 1940. The suggestion of the War

Office made in the two above-mentioned letters is that in view of

the present abnormal circumstances this Government should allow

the agreed arrangements relating to the acquisition by the War

Department of the site of the new Cantonment at Kau Lung Tsai

to remain undisturbed and should extend the rent free occupation

of the site at Sham Shui Po until the situation has been reviewed

after the termination of the war.

2.

The agreed arrangements are set out in Sir A.

$3654 Caldecott's confidential despatch of 25th November, 1936, in

36

paragraph 10 of which the agreement is summarized as follows:-

"(a) The Colonial Government waives its claim up to a maximum

of $1,000,000 in respect of the rent of the Sham Shui Po

camp site.

In return the War Department will bear the whole capital

cost of the anti-malarial works on the Kau Lung Tsai site,

up to a maximum of $975,000, and the cost of their future

maintenance.

THE RIGHT HONCURABLE

LORD MOYNE OF BURY ST. EDMUNDS, D.S.O.,

&C.,

&C.,

&c.