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When leases are granted they must be similar to those granted in Victoria, with the same Clause as regards resumption by the Government.
It would be unfair, in His Excellency's opinion, to fix now a rate at which the Government might at any future time resume, irrespectively of the change which may take place in the value.
You have already been informed that Lieutenant Williams R.E. has been appointed to the charge of the Kowloon District (Vide letter No. 434 of 29th ultimo).
One Sapper, a Chinese Overseer, and a Messenger will be placed under his orders, and provision has been made for these in the annual Estimates.
Mr. Williams will report on the improvements which may be effected by the tenant.
As to leaving Chim Sha Tsui untouched for the present, His Excellency thinks it better to obtain possession at once of the whole S.M. end of the Peninsula. If the area now under cultivation be not all required, it can be let by the half-year.
Correspondence that has passed on the subject of the Compensations and development of the District should be necessary to proceed to carry out the arrangements for dispossessing all the Tenants upon the S.M. point of the Peninsula, and selling the area recommended by Mr. Cleverly before.