Losure
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their attitude regarding the Cheung Chau reservation, which was reported in my confidential despatch of the 27th November last; and a further incident recently occurred which shows how the wind blows, Last summer four leading members of the British European community approached the Government with regard to the acquisition of adjacent sites for four bungalows along the new road on the south side of the Island, and after considerable time and trouble spent on preliminary | negotiations the land was put up to auction; whereupon certain wealthy Chinese Eurasians appeared and informed the Europeans of their intention to outbid them, an intention which they proceeded to carry into effect. I enclose a copy of a letter subsequently
There is good reason for
received from the original applicants. believing that their suggestion as to the purchasers' motive in buy-
ing is correct; more especially as the Cheung Chau incident, which had occurred a short time previously, was brought about by a member of the same Chinese Eurasian family.
7.
I do not propose to argue the racial aspect of this demand for a European reservation; but in the circumstances of this Colony, where but little building land is available and where the Asiatic preponderates enormously both in number and in wealth, it is not unreasonable to ask that the European, or at least the European of British race, should have the protection of some barrier against the economic pressure which is steadily ousting him from those residential areas of the Colony which are most suitable for his
occupation.
8
The opportunity has been taken of the negotiations with the Humphreys Estate and Finance Company to sound them as to their willingness to perpetuate their present policy of restricting residence in their properties on the May Road level to Europeans; and as they were prepared to accept the proposals made an enquiry on similar lines was addressed to the owners of six other houses in, the immediate neighbourhood.
9
The area within which these properties are situated
10