£492, 5.3 and the premium paid on the Leases £478.1.8.–

In the Surveyor General's letter No. 18 of 28th March, which will be found in the Blue Book, and is well worthy of perusal and consideration, the necessity is shown of extending the city along the water in a western direction. As in that locality are to be found almost the only valuable spots now left for carrying on trade with facility, and as, should this ground not be disposed of, the town itself, especially in the Chinese part, will be unhealthily over-crowded, I would earnestly support Mr. Cleverly's recommendation that the land to the westward be planned forthwith for sale.

The nearer portion of the ground to which I allude has already been sold, and in the stagnant days of the Colony thrown back on the hands of Government, the further part has been occupied, but is now abandoned by the Naval Department, who have acquired a more convenient position in the centre of the Town.

I see therefore no obstacle to

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