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2. In September 1857 the Colonial Chaplain proposed to rent the Government Bungalow on Hospital Hill, which was not in very good condition, offering to put the building in good repair at his own expense, but to be repaid the amount out of the rent, or by the Government in the event of the ground being required before the outlay had been recovered. These terms Sir John Bowring objected to, as he thought it undesirable to expend money on premises which the Government had long before determined to dispose of. But he decided that "as there was no probability of the Site being actually required before October 1858, the House might be let to the Colonial Chaplain for 12 months at the rent of $15 per month, he to do what he liked in the way of repairs."
3. The smallness of the rent, which for Hong Kong was little more than nominal, was supposed to be sufficient to repay the Colonial Chaplain in 12 months the expense of making the place habitable. On these terms the Colonial Chaplain took possession; but the ground not being required at the end of the 12 months, he was allowed to hold on to the House until the 15th May last—a period of nearly three years—at the same rate as that fixed by Sir John Bowring for one year, namely $15 per month, or about £37. 10s. per annum.