3.

the compensation paid to them by the Government.

If you ask me why, in these circumstances,

the remaining occupants of the slum refuse to accept an

exchange which on my showing is ao advantageous to them,

the answer is that they are being encouraged to hold out

by persons behind the scenes who have other reasons for

their action. The present position cannot possibly be

allowed to continue and I am in entire agreement with

the Hongkong Government that it should be termina teď

without delay. As soon as these last insanitary slum

houses have been removed the area will be turned into a

garden to the great benefit of the whole neighbourhood,

and particularly of the schools and benevolent institu-

tions which still remain in the City.

Yours sincerely,

(Signed) H. M. KNATCHBULL-HUGESSEN.

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