I would ask the O.A.G. for his criticisms on Mr. Howard's letter on 19573/04 before expressing any further opinion. As I am at present advised I agree with the previous minutes but Mr. Howard is sure to come here and I should like fuller information before I see him.

[Stamp or notation: unclear]

H.B.E. [possibly "Hongkong Blue Envelope" or similar notation]

Tapu [likely "Tapu" as in land registry]

No.

Congkong [likely "Hongkong"]

C

HO

Sir

16030

219

04

Government House,

Hongkong, 24th February, 1904.

37014

I have the honour to acknowledge the receipt of your Despatch No. 380 of 21st October last respecting the case of Messrs. Stephens and Howard. I have given this matter my careful consideration and I came to the conclusion that the best way to deal with the case would be to grant compensation on the same basis as was done in the Musso's case, reported to your predecessor in Sir Henry Blake's Despatch No. 376 of the 16th August, 1900, since the two properties are similarly situated close together in the same locality. Compensation in the Musso case was settled in an amicable manner, and there is no reason why more liberal compensation should be given in Messrs. Howard and Stephens's case. The Finance Committee of the Legislative Council apparently concur in this view.

Enclosure 1.

2. I enclose copy of the Financial Minute which that Committee has passed. It shows how the additional compensation which I recommend should be paid, is arrived at.

Enclosure 2.

13th January, 1904.

I communicated a copy of your Despatch under acknowledgment and of the minute to Mr. Stephens, and I enclose copy of his reply. The minute will be confirmed at the next meeting of Council and if Messrs. Howard and Stephens accept the additional sum.

To

HE RIGHT HONOURABLE

ALFRED LYTTELTON, K.C., M.P.,

&c., &c., &c.

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