CO129-588-12 Military lands- arrangements for war period 20-2-1941 - 30-8-1941 — Page 17

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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(b) The Colonial Government spends $60,000 on doubling a section

of the Customs Pass Road and waives its claim for

$125,866 cash payments in respect of the Kau Lung Tsai site as a sole contribution towards the cost of constructing the roads sketched on Enclosure (1), the maintenance of which (outside War Department lands) it will take over as from

the date of completion of each of them."

The $1,000,000 referred to in (a) represents rent at the rate of $125,000 per annum for eight years from 1st January, 1933. From the copy of correspondence with the War Office, enclosed with Mr. Ormsby-Gore's confidential despatch of 4th August, 1937, it will be seen that it was agreed that the War Department should be liable for the payment of rent for the

such other Sham Shui Po area at the rate of $125,000 a year or figure as might then be appropriate if the area remained in the occupation of the Military Authorities after 31st December, 1940.

3.

While this Government is prepared, in the circumstances,

to allow the agreed arrangements in respect of the Kau Lung

Tsai site to remain undisturbed until the termination of the war, it cannot agree to the suggested extension of the rent free

The retention of occupation of the Sham Shui Po Camp site. this area by the Military Authorities is seriously interfering

with town planning and town development, which is a vital

problem in a Colony where building land is scarce and where

development is already hindered by the unsolved problem of the

military lands. In this connection I would invite attention to

Section 3 of the Defence Contribution Ordinance, No.8 of 1939,

which reads as follows:

"The annual payments shall be deemed to be a fixed

contribution payable by the Colony in full return for

the annual cost of the Imperial garrison, including all

capital expenditure required for military lands and

buildings, and the cost of maintenance of all military

works and buildings, and the cost of lodgings in lieu of

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