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abandonment of the site at Stonecutters in connection with the settlement with the War Office of the King's Park question the Director of Public Works has now under consideration the selection of a new site for this prison.

No. 14. School at Yaumati. It has not been found possible to put this in hand in 1904. I have visited the Chinese tenement house on one floor of which the Anglo-Chinese School at Yaumati, which has 93 boys on the roll, was being carried on and I have no doubt that the provision of a proper school-house will tend to the spread of education in this important Chinese quarter.

The existing

No. 16, Volunteer Head Quarters. building is very old and much too small for present needs of the Corps and these needs will be increased by some increase in the strength of the Corps which has recently taken place and which I trust will be maintained. I understand that lack of funds is the sole reason that this improvement has not been undertaken sooner. I have now approved of the accumulated grants for efficiency in past years being devoted to this purpose and propose that these should be supplemented by the $5,000 included in the Estimates.

No. 26. Kowloon Roads. This item was explained in the final paragraph of my Despatch No. 346 dated the 20th September last. The laying out of broad main roads in Kowloon will hasten the development of that increasingly important part of the Colony and will tend to preserve in it healthier conditions than obtain in Victoria.

The total expenditure estimated for the year on the above 7 items for new works is $87,000 or only about

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