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Hon. Colonial Secretary,

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I am very unwilling to let this opportunity lapse. I think it is almost essential to acquire this site, and that we shall get our money back indirectly by the increased

business of the market.

The Director of Public Works' estimate

was $29.45 per square foot. Their offer is $61,000 for 1897 square feet which includes 10% for compulsory resumption. The value they place on the property is therefore[$61,000 - less 10% equals $55,000 which is equal to $29.25 per square foot

which is very close to the Director of Public Works' and slight-

-ly less. Our offer was $41,561. If this was increased to

their own valuation of $55,500 and the reasons for diminution

in value which the Director of Public Works gives were put

before the owners they could hardly fail to accept, secing that

under Arbitration they could not get more (except the 10% for

compulsion) and might get less. I think it would be a great

mistake to lose this chance for the sake of the extra $14,000.

Ar the Director of Public Works agrees that we cannot hope

to do better than $55,500 would approve that offer.

(sd.) F. D. Lugard.

4th. November, 1910.

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