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subject to a reduction in the payments if during the period the garrison itself were further reduced. this way the Covernor believed that a prolonged hagele over the temas on which the land would be surrendered would be avoided.
7. Hong Kong's capacity to haggle over this land no doubt exists, According to the Hong Kong Covernment freehold title cannot be claimed to a single one of the four lots proposed.
It is doubtful in some cases whether the Army or the Royal Navy can claim any kind of title, other than that arising from mere occupancy. The total extent of the land is about 16 acres and the amount of compensation, whether for improvements only or for those plus title, is uncertain. It should certainly be borne in mind in considering the financial implications of the Governor's proposals that owing to their lack of proper title, the Service Departments may well be unable to establish a case for compensation amounting to anything like the figure of 3m. referred to in paragraph 3 of 3.(58) 1.
VIENS OF SERVICE DEPARMANTS,
8.
The Service Departments are opposed to Sir Alexander Grantham's proposal. They envisage long and detailed negotiations, on the lines of those over the furray Barracks arcă, which the War uffice is now going to surrender to the Government in exchange for building works to the value of 1.1m. They regard these areas as based on a similer title arising from occupancy since 1842, and of similar value. The real point, however, of Service Departments opposition is that they are not prepared now, without further examination of title, without clearing up any claims disputed as between the War Office and the Admiralty, and without a thorough survey of the value of the whole land, to make a deal on the lines which the former Governor suggested. It is possible that the War office will not in fact wish to leave one particular lot - the Wellington Barracks area. The Minister of Defence in fact rejects Sir Alexander Grantham's proposal as unacceptable.
POSIBLE LINE FOR SECRETARY OF STATE IN DEFENCE COLTEL.
This
9. In his latest telegram (Annex B) Sir Robert Black says that our best course would be to disregard the complicated arguments about the military lands, and fall back on the straight proposal that if the two artillery units are provided he will secure the release of the current defence contribution and its maintenance at lm. for the period during which the units romain. would certainly be the simpler solution, but as it involves a reversal of a Defence Committee decision (4) of 30th Way 1957 quoted in the opening paragraph of D. (53) 1 it is clearly unacceptable to the Service Ministers and probably to the Chancellor. It is Page 223 of 283
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