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glad to know whether the offer therein made has been accepted by your client.

I have the honour to be,

Gentlemen,

Messrs. DENISON RAM & GIBBS.

The Hon. W. CHATHAM,

Director of Public Works.

Sir,

Your obedient Servant,

W. CHATHAM,

Director of Public Works.

Hongkong, 5th October, 1906.

Kowloon Farm Lots Nos. 3 and 4.

Replying to your letter No. 1360 of 19th ultimo, referring to an area of ground situated upon K. F. L. No. 4 which the Government desire to acquire; we are instructed to inform you that our client—understanding that the land is required for the new railway—is very wishful to meet the views of the Government upon this subject. He thinks however that the offer of the Government contained in your letter under reply is somewhat less than fair; and suggests the under-mentioned terms in place of those offered.

(a). The owner to be compensated for the loss of land required for the railway by a similar area of land near to the Steam Laundry premises, and upon the road which is to lead from Yaumati to Kowloon City. (b). The owner refers you again to our letter of 8th May asking for $4,000. compensation for the removal of the house. We suggest to you however that, if you consider this claim excessive, you should remove and rebuild the premises yourself—upon a site to be agreed upon—providing quarters for the occupants during the process of rebuilding.

(c). The owner states that the fruit trees yield $100. worth of fruit on an average every year, and the least that they can accept in compensation is $500.

(d). The crown rent of K. F. L. No. 4 to be reduced as you suggest; and the crown rent of the new land granted to be calculated upon the same basis.

We are

Yours faithfully

(Sd.) DENISON RAM & GIBBS.

8

No13

No. 1492.

Gentlemen,

Public Works Department,

Hongkong, 11th October, 1906.

Kowloon Farm Lot No. 4.

In reply to your letter of the 5th instant, I am directed to inform you that your proposal (a) cannot be entertained and that, whilst adhering to the valuations on which the offer contained in my letter of the 19th ultimo was based, the Government are willing, in order to bring the matter to a conclusion, to increase their offer for the removal of the house to $3,500 and for the fruit trees, bamboo hedge, &c., to $500.

The other terms remain as stated in (a) and (d) of my letter of the 19th ultimo.

This offer is made without prejudice and, unless your client accepts it within 7 days, I shall advise the Government to proceed under the Crown Lands Resumption Ordinance.

I have the honour to be,

Gentlemen,

Your obedient Servant,

Messrs. DENISON RAM & GIBBS,

The Hon. W. CHATHAM,

Sir,

Director of Public Works.

W. CHATHAM,

Director of Public Works.

Hongkong, 22nd October, 1906.

Kowloon Farm Lots Nos. 3 and 4.

Referring to previous correspondence upon the subject of the acquisition by the Government of parts of the above lots; and more particularly to your letter No. 1,492 of 11th instant, and to our conversation of Friday last:—our clients regret that you are unable to meet their wishes in the matter of their suggested exchange of land, and that you adhere to your terms of compensation stated in paragraph (a) of your letter under reply. We call your attention again to the fact that land in the immediate vicinity i.e., part of Farm Lot No. 3 has been sold by its Chinese owners to the Hongkong Hotel Co., within recent years (about twelve months ago we believe) for a price that works out at about 40 cents per superficial foot.* Under these circumstances they think that it is unreasonable to ask them to accept 3 cents per superficial foot for their property.

They are aware however that it is desirable that the railway should be built, and realize fully that it is the part of a good citizen to

* One of the reasons for this apparently high price is that the land is leased for 999 years at the almost nominal Crown rent of about $5 per acre per annum.

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