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by the Housing Committee who were against it.

Difficulties would

arise if a large house (with a high assessment and rental) were

not required by a senior officer. The present system, where by rent at the rate of 6% of the officer's salary is charged, works sufficiently well, and, generally speaking, produces much the same result as that de sired by the Commissioners. An occasional anomaly is inevitable in any scheme. The instances quoted by the

Commissioners are two extremes; the officer in the two roomed flat

was single and definitely chose the quarters; the other officer

had a wife and two children.

Paragraph 10. With the exception of a few officers, who by the terms of their agreements are entitled to free quarters this rule is invariably enforced.

Paragraph 11. The statement contained in the latter

part of this paragraph is incorrect.

Paragraph 12. In no case has an officer on transference

from one branch to another of the service retained the right to

free quarters. On such a transference, the fact that the right to free quarters is 1 ost is taken into account in fixing the position in the new salary scale of the transferred officer.

Crown Rent was increased in the Kowloon

Peninsula last December. The possibility of increasing it on the Island is being considered.

Paragraph 13.

Paragraph 14. The upset price at land sales is always fixed at what is considered to be a close approximation to the market price.

Paragraph 15. Whilst Government does not agree with the total abolition of building covenants in the New Territories

it agrees

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