annual Revenue. This scheme is likely to produce an equal annual revenue in Kowloon, but there is obvious convenience in adopting the same arrangement on both sides of the narrow strait that separates Hongkong from the Mainland.

5. To carry out this scheme, a Resident Engineer would be required - who, Mr. Cleverly suggested, should be an officer of the Royal Engineers - assisted by one Chinese overseer and two Coolies. Provision for the expense of this Establishment is to be made in the Estimates.

6. The Governor of Hongkong has approved generally Mr. Cleverly's proposals. The rent to be paid for land under lease should be the same as was formerly paid to the Chinese Government. But he considers it would be unfair to fix the price at which leased land may hereafter be purchased. An Engineer Officer, Lieut. Williams, has been appointed to the charge of the District, and the establishment suggested by Mr. Cleverly will be assigned to him.

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