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interview on the 20th, a letter was written to Governor Sir Henry Blake, signed Alfred Lyttleton, stating that he was not entirely satisfied that the compensation awarded may not have been inadequate, and requested the Governor to investigate the whole matter afresh and that if substantial justice demanded it, to ask the Legislative Council to vote an additional sum.

5. Governor Blake was not in the Colony at the time but the investigation was undertaken by Acting Governor May, who awarded a sum of $9,367 in addition to the $15,000 already awarded by Acting Governor Major General Black, making in all $24,367.

6. This sum was in no sense commensurate with the loss sustained and we informed the Secretary of State to that effect with the result that the question was referred to the new Governor of Hong Kong, Sir Matthew Nathan, for enquiry whether further compensation could justly be paid to us, having regard to all the circumstances of the case, and without prejudice to the strict legal rights as defined by the Ordinance and the Courts of Law.

7. Under the Ordinance, Governor des Voeux, who passed it, in his message to the Legislative Council wrote, that the frontage Lot Holders are strictly entitled to compensation, only in respect of the actual depreciation of their property by the Reclamation in front of it, but by the provision in question (Compensation Clause) there can be taken into account the moral claims, so that instead of being a hardship to the dissentient Lot holder, the clause in reality will operate for his protection.

He also wrote that it is needless to say that the Government had no desire to accord other than the fullest justice in

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