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probable sale of the plant.

Item No. 3 is urgently required owing to the great increase in the number of animals imported into the Colony for export to Manila. The animals are at present crowded into sheds only designed to hold half their number, and a large number of cattle have to be accommodated outside the depots on a piece of waste land, and the fees that would be collected on them in the depot are thus lost.

This is therefore a remunerative work.

Item 4 is absolutely necessary for the accommodation of the Bacteriologist.

The item $4,000 for the King's Park will be a re-vote of the item "Laying out Public Recreation Ground Kow-loon," which appears under "Botanical and Afforestation Department," "Other Charges", in this year's Estimates, and upon which I propose to spend only $1,000, if anything.

4. Regarding the items set down as chargeable to a loan, I may mention that since the report enclosed in my Despatch No.302 of the 10th instant was written, Messrs. Denison, Ram and Gibbs have, after careful calculation, reported that they will require $250,000 to be spent on the Kowloon Waterworks. This sum is largely in excess of what the Committee anticipated could be spent on these works.

5. In view of the large expenditure set out in the schedule for Waterworks, I do not see how the necessary ordinary Public Works can be provided for unless a loan is resorted to.

6. In the meantime, I have to ask your sanction to provide for the items Nos. 1, 2, 3, and 4, above referred to.

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