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is a Portuguese lady also well dressed. They do not move in European society, but are frequently seen on public occasions such as Flower Shows, mingling with the crowd of well-dressed people. These particulars are necessary in order that the case should be thoroughly understood.

5. Before concluding the arrangement, I thought that, as they were not people who could visit at Mountain Lodge, I ought to consider the Governor, who might perhaps not care to have them for such close neighbours. It being Sunday afternoon I went across to Mountain Lodge to tell Sir Frederick and Lady Lugard in a friendly way who had taken the house. This was done informally as a neighbourly act, which I should have done if any one not of good social position had taken it: in fact as a social duty, and I imagined it was so understood. I should say however that beyond the social standing there was nothing in any way which could have rendered their tenancy objection- able to the Governor, and I understood that he had no social objection. Something was said about the Peak Reservation Ordinance; I said laughingly that would not apply to Mr. Ho Tung.

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6. I should say at this point that I had never had occasion to look at this Ordinance. I knew of its existence in a vague

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way but presumed it to be a relic of the early days of the Peak, which had fallen into disuetude. I did not connect Mr.

Ho Tung with it in my way, knowing that he lived on the Peak; and if I thought at all about the matter it passed out of my mind both on this account and because Mr. Mal tl and would not have introduced him to me as a tenant had he there been any legal objection to the tenancy.

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7. On the following day I received a visit from Mr. Ho Tung Secretary, who was instructed to ask me whether I thought he came within the Peak Reservation Ordinance. I then looked at the law, and found to my surprise that it was passed in 1904, that it prohibited owners from letting their houses on the Peak

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