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the Southern District, I came to the conclusion that there were no sufficient grounds for reducing the rates of Crown Rent and that the main cause of discontent was an apprehension that these rates had not been fixed permanently but were liable to be raised again in the future. This apprehension received justification from the clause in the Crown Lease which declared "that on "the expiration of the first ten years of the terms hereby granted "ed the rent hereby reserved shall cease and thereafter such "rent shall be paid and become payable as shall be fairly and impartially fixed by the Surveyor to His Majesty as the fair and reasonable rental value of the ground at that "date." Both Land Officers considered that this clause should not be enforced and as I was of the same opinion I caused the proclamation of which a copy of the English version is enclosed to be published in the New Territories. The proclamation as will be seen granted also concessions on two minor points. I have been informed that it gave satisfaction and that it was the intention to submit a letter of thanks for the relief that it granted. Mr. Hood commenting on the petition sent to Your Lordship states that he doubts whether the signatures to it could be collected at the present time after the issue of the proclamation promising not to raise Crown Rent in 1908.
10. Though the agitation may thus be said to have died out, it is still advisable that I should inform Your Lordship
Enclosure 2.