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the other by steep hillside, composed almost entirely of rock.

A projecting spur of the hills runs out between the points marked "A" and "B" on plan, causing the great bands and steep hill in the existing road already alludad to. This spur fortun- -ately consists largely of earth or decomposed granite.

5.

Immediately south of the letter "B" on plan, there is a dam belonging to the Taikoo Sugar Refining Company for impounding water for the supply of their Refinery.

6.

It may be gathered from the foregoing that the difficulties of carrying out my improvement schano, except with the co-operation of the Taikoo Sugar Refining Company, are almost insurmountable and, as the necessity of devising some such schane in order to provide for future developments was obvious, the Director of Public Works, in 1912, approached Messrs. Butterfield and Swire on the subject, suggesting that, when it became necessary for the Refining Company to re-construct their houses, they should remove them to some other site, which would be granted by Government, beyond the limits of the existing village and shouli relinquish to Government for road-widening purposes, the area at present occupied by the houssa. He further suggested that a sufficient ares of land batween the points marked "A" and "B" on plan,

should all of which is the property of the Refining Company, be surrendered to Go vemment, in exchange for an equivalent area alsowhere, to enable a good, wide cutting to be made through the spur, thus eliminating the existing tortuous part of the road and enabling the gradienta to be materially improved.

7.

Matters were not ripe for the execution of the scheme in 1912, but, though it has lain dormant, it has not been lost sight of. The recent visit to Hongkong of Mr. Warren Swire, in connection with extensive developments con- -templated by his firm, afforded an opportunity of reviving

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