12

73

491

who has been, ofor,

past

some months

in communication.

with the Peninsular and Oriental

Steam Navigation Company,

Mr Chater

8.

to you

on

the subject.

and

Before telegraphing

I submitted the whole proposal to the Executive Council and to the Finance

Committee, by which bodies it

was unanimously approved. Since that time the price asked

by the Peninsular and Oriental

Steam Navigation Company

was $6.50 per square foot. A travelling Inspector of

the

Company, to whose decision the

matter was

referred by the

Company, raised the

price

to

$7. a square foot. This made a difference of $18,771. Mr. Chater, who had originally

agreed to pay to Government

for

the portion sold to him the same sum that Government paid for the whole lot,

consented to pay two-thirds of the increased price. The other

third

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