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74. (Item 26.) Resumption of Insanitary Property-Kau U Fong Resump- tion. This scheme for opening up the densely crowded area in the centre of the block bounded by Aberdeen Street, Gough Street and Wellington Street referred to in the last Report has been pushed forward. Alternative plans were prepared for dealing with the property and it was finally decided to construct a road from Aberdeen Street to Gough Street, the first part having an easy gradient, and finish- ing at the Gough Street end with a flight of steps. The whole length ultimately to be 30 ft. wide but for the present the piece facing On Wo Lane to be slightly less than this. This modification with the flight of steps at the Gough Street end, was necessary to prevent the remaining property from being unduly injured by the carrying out of the works; it is hoped, however, that at a later date, several of the houses in On Wo Lane will be re-built when the whole road will be widened to 30 feet.

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Two houses-No. 3, Aberdeen Street, and No. 9, Kau U Fong West,-were purchased during 1903. leaving 34 more to be purchased before actual construc- tional work could be commenced.

A notice was served under the Crown Lands Resumption Ordinance late in December of 1903 for the resumption of 23 of these houses, and 3 houses-Nos. 5, 6 and 7, Kau U Fong West-were purchased shortly after by ordinary negotia- tions. Owing to difficulties in negotiating prices, it was decided in April to settle the amount of purchase money by arbitration, as provided for in that Ordinance, and this was notified in the Gazette of May 6th.

The purchase of the following 14 houses was, however, successfully settled prior to the arbitration proceedings:-

Nos. 1, 2, 3, 4, 5, 6 and 7, Kau U Fong,

No. 8, Kau U Fong West.

No. 1, Aberdeen Street.

Nos. 5, 7, 13, 15 and 17, Kau U Fong South.

A further notice under the Crown Lands Resumption Ordinance was served on the houses in Gough Street and Qn Wo Lane in June, and the ten houses com- prised in this notice were then bought by agreement, and one house-No. 9-was purchased immediately prior to such notice being served. Negotiations having failed with respect to the remainder of the property required, the arbitration com- mittee consisting of Mr. DANBY, M.I.C.E., representing the property owners, Mr. P. N. H. JONES, A.M.L.C.E., Director of Public Works, representing the Government, with His Honour Mr. Justice SERCOMBE SMITH as Chairman, met in July and August and dealt with Nos. 1 and 3, Kau U Fong South, the owners being awarded $9,227.83, and it was agreed by the representatives of the owners to accept compensation for the remainder of the property still in dispute, on the basis of the compensation award of the arbitration committee; the houses thus settled for were :-

Nos. 9 and 11, Kau U Fong.

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19, Kau U Fong.

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4, Kau U Fong West.

It was found essential afterwards that No. 3, Kau U Fong West, should be purchased to make the scheme complete, and its acquisition has since been effected. To expedite matters, however, the contract for carrying out the work in connec- tion with pulling down and forming the new roads, with necessary retaining wall, sewers and storm-water culverts, was entered into in December. The amount of the contract being $21,233.95. The total land acquired amounts to nearly 27,000 square feet, and the amount of land available as salvage will be about 14,000 square feet.

Chair Coolie Quarters, the Peak, upon R. B. L. 83.-It was found advisable after building the new Chair Coolie Quarters to resume the Coolies' old house situated on . B. L. 83, close by, the total area resumed being 1,975 feet super- ficial. It has since been put in repair and has been let to the Coolie Contractor.

A special report is being prepared on Resumption work from its cominence- ment up to date.

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