17.

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holdings, and compensation in money is required where it is impossible to effect exchanges of land. Endeavours are made to effect such exchanges whenever possible and it is hoped therefore that the whole of the large sum provided will not need to be expended.

In New Kowloon under Communications and Drainage considerable expenditure is provided for in connection with the Kowloon Tong Development Scheme. It must be remembered,

however, that the large sewers and storm water drains in

that area are part of a general scheme and would have had

to be constructed in any case. Under the head Miscellaneous

a sum of $100,000 is provided for continuing the work of excavation and filling at Kowloon Tong. A sum of $250,000 is also provided for Compensations and Resumptions in this district for the same reasons as in Kowloon.

In the New Territories the bulk of the expenditure

is under "Water Works" in connection with the Shing Mun

Valley Scheme. The chief item is a sum of $600,000 to

complete the tunnels and conduit. This work is in progress

under contract and cannot be stopped. Similarly the filtering plant and pipes have been purchased in England and must be paid for. Other parts of the scheme can be

postponed for the present. Under "Communications" the

works for which provision has been made are either under

construction or necessary to fulfil obligations which

the Government has incurred.

It will be noted that the Estimates contain no

provision for expenditure in connection with the movement

of the Military Establishments from their present central

situations. It is with great regret that I am compelled

to announce that in present circumstances it is impossible

to proceed with the proposed reprovisioning. We were

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