Year, entered the Ports; for the smaller traders and warehouse-keepers, there will always be business, and by no means insignificant, and looking at the houses in which these latter reside and the style in which they live, it would seem that their dealings are considerable and remunerative. I cannot therefore admit that the reduction of the Ground Rent to one-half of what they now pay could have the effect of inducing them either to remain in, or quit the Colony; and with respect to the Chinese, considering the small sums that they pay for their ground, I think they have nothing to complain of in any way, nor, as far as my experience goes, after making enquiries in all quarters, do I find that they do complain.

15. In the 7th Paragraph of the Committee's letter (Enclosure No.2), it is represented that a difficulty exists in disposing of landed property in consequence of the inability of the Lessees to transfer a subdivision of their lots. I referred the question for the opinion of our Attorney General, and enclosed are his observations thereon. In my opinion, it would be well that parties should be allowed to dispose of portions of their properties, as recommended by the Committee; but the concession might never be open to much abuse. For instance, any party having a house erected on a large lot of ground might be desirous of getting rid of a part of the ground, because it is useless to him. The Government might not be disposed to take a surrender of the portion, because, in consequence of its size and other circumstances, there would be no chance of any other person taking it. A proprietor so situated might make a sale of this portion of the land to a straw, by which he would be relieved from any further claim on the part of the Government, while the individual to whom

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