78

13. (Confined).

10.

Public Works, which letter makes it abundantly clear that the reservoir was being acquired solely for the purpose of the Company's Sugar

Refinery at Quarry Bay and asks for a reduc-

tion in the said upset price, namely $50,000, of Inland Lot 1336, which reduction was granted by the Government, the figure $40,000 being substituted for $50,000.

The purpose of this letter is to enable your clients to

have a concise statement of the reasons which underlie the

warning contained in my letter of the 30th August. It must

be clearly understood, however, that no attempt is here made to set out the whole of the Government's case; more especially as Counsel for the Government, Mr. Eldon Potter, K.C., is absent from the Colony. Full right, therefore, is reserved to modify,

alter and add to the case indicated above.

11. It would seem that the documents referred to above are

accessible to yourselves or to your clients. An examination

of documents, some of which may be material, is being made;

at a later date it may be possible to arrange for mutual

inspection, if your clients do not accept the Government's view

in this matter.

Yours faithfully,

sā.

E.K. Holmes

Crown Solicitor.

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