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residential areas on the lower levels; and, if quarters were built on those levels, it is doubtful whether the Cadets and similar Civil Servants, especially those with families, could
be induced to live in them.
8.
The Peak is already filled to its utmost housing capacity, and it is becoming a matter of daily in- -creasing urgency to relieve the pressure by opening out new sites, especially having regard to the ievitable influx of
European residents after the war. In these circumstances it
is obviously a matter of public expediency to prevent the
monopoly by a Chinese of this large, central, finely situated
area, and to utilize it for a number of European houses in
place of one unweildy Chinese residence.
9.
For the foregoing reasons the measure of the value of the site to the European community cm hardly be
set out solely in terms of money; and the Govemment would be,
I submit, fully justified in spending an even larger sum than
that now in contemplation in order to acquire the property.
10.
But solely from the financial point of
view the bargain would not be a bad one. It may be assumed that $450,000 would be an outside figure for the expenditure
on land and development necessary for the provision of antire-
-ly suitable accommodation for at least twelve Civil Servants.
Supposing for the sake of argument that three of these are in
Class I, four are in Class II, and five are in Class III.
Under the rent allowance scheme an officer in Class I can
take a house at $2,400 a year, towards which the Goverment pays 1,680. A Class II officer, entitled to a house at $2,100 a year, gets $1,500 from the Government. A Class III
officer similarly gets 31,020 towards his rent of $1,500. In the case of the twelve officers in question the Government,
would save all rent allowances and it would get the rental of $720, 8600, or 8480 charged to officers in Mass I, II, or
III; with the result that it would be in pocket $23,100
annually
A
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E