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"MONOH

The question now arises in the changed circumstances as to the use to which the land and buildings should be put.

It is possible that the sale of the land will be considered by the Imperial Government as a solution of the problem but as any definite decision is unlikely to be arrived at for some considerable time I have the honour to enquire whether, in the meantime, it is the desire of the Hongkong Government that a tenant or tenants should be found for the whole building.

I was formally approached a few months ago by the Chinese Postal Commissioner at Shanghai as to the possibility of a lease of the buildings being granted to the Chinese Post Office for two years but I have since been infomed that the ides is no longer being considered by the Postal Authorities at Peking.

Very considerable structural alterations would

be required to render the building suitable for business purposes and indeed it is difficult to see how it could be adapted for commercial letting without practical) v rebuild- ing the premises or at any rate spending at least ten thousand Taels on alterations. The supply of office accommodation in Shanghai at present exceeds the demand and it is unlikely that tenants will eagerly present themselves. The rental value of the premises on the basis

of floor area is at the present time not less than Taele 1,500.00 per mensem,

From a commercial stand-point the Post Office

property is very much under-developed and the question must

be considered as to whether H.M. Government should not make

more profitable use of it.

Pending a decision as to the ultimate

disposal of the property, I sugest for Your Excellency's consideration that authority be granted to me to raise the rent of the premises occupied by Messrs. White-Cooper and

Master

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