of rent which will seriously affect the poorer members of

the public service, unless we have recourse to a largely increased system of house-allowances which would be probably more costly and certainly less satisfactory than the provision of accommodation in Government buildings.

9.

I note your desire to be furnished with a programme of works for the next few years showing the total estimated cost, rate of completion and comparative urgency, and will do my best to supply what is required. I would, however, deprecate any attempt to decide definitely on the order of urgency of whatever works are proposed. Huch must depend on circumstances, e.g. If Chine settled down and there was a prospect of the Canton Hankov railway being completed and connected with the Kowloon line in the near

future, I should place the provision of deep-water wharves at Hung Hom in the fore front of any programme but until

there is a reasonable prospect of the preliminary condition being fulfilled, they can be left over indefinitely.

I think that the most satisfactory

classification will be as follows:-

(a) Works which are essential to the proper

administration of the Colony or to Public Health

e.g. The Gaol and certain markets.

(b) Works which though not essential are desirable

and directly profitable e.g. certain Reclamations

and Roads.

(c) Works which are desirable but will not be directly

profitable e.g. Widening of certain roads in the

City.

I would propose also to indicate my views as to which works

should be carried out from revenue and accrued balances

and which should be provided for by the issue (a) of debentures or Treasury Bills or (b) of a long term loan.

10.

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