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Engineers the first of which was "that the Hongkong Government should acquire all the land for both Schemes 2 and 3", and as this proposal still holds good I have instructed the Director of Public Works to open negotiations for the acquisition of the land. The total estimated cost is (as shewn in enclosure 2) $787,167 of which land representing an approximate value of $332,000 will actually be used for Railway purposes, and land representing a value of $455,167 will be available for short leases.

7. I have the honour to request your sanction to the proposals contained in this Despatch, which will be recommended in due course by Mr. A. J. Barry in his report to the Consulting Engineers, and also to request an expression of Your Lordship's views as to the alternative methods of dealing with the provision of the sum required, as explained in my paragraph 4 (b).

I have the honour to be
My Lord,
Your Lordship's most obedient,
humble servant,
S. G. F. Warren
Acting Governor, &C.

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