CO_968_583_DEFENCE_OF_HONG_KONG_1957_1959 — Page 229

6.

Page 229

has

Page 229

Sir Alexander Grantham therefore made

proposals which might have some attraction for

(Anny C)

the unofficials They covered four lots of land

occupied by the Navy in the dockyard area which

are still regarded by the War Office as War

Office land. The Navy would evacuate this

land on the closure of the dockyard, and the

Governor's proposal was that if the War Office

was prepared to relinquish its claims over it

to the Hong Kong Government the latter would

maintain a defence contribution of £1m. for the and, in addition, would pay next five years

half the additional cost of

maintaining the two additional units for the

same period, subject to a reduction in the

payments if during the period the garrison

In this way the

a.]

itself were further reduced.

Governor believed that a prolonged haggle over

the terms on which the land would be surrendered

would be avoided.

7.

Hong Kong's capacity to haggle over this

accending witter Hing kong government, land no doubt exists. Freehold title cannot be

olaimed 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 £3 m.

referred to in paragraph PagZO) of 283

18.