Government was informed by the Solicitors for the applicant that they were prepared to advise their clients that any decision of the Executive Council or Secretary of State to which our clients or their predecessors in title of these lots were not parties, is valueless, and has no binding effect against our clients' Crown leases; further, that there was nothing in the Crown leases affecting the question, and that in the event of the Government not withdrawing its alleged right to prevent the creation of Chinese Houses, it is our clients' intention to take such proceedings to remove the claim as they may be advised.
4. I requested the Acting Attorney-General, and the Surveyor-General to consider and report jointly on the questions raised by this correspondence and I have the honour to annex a copy of their report dated 27th August, 1886, from which it will be seen that they think that