Ec

M

Ausil

No. 382.

Sir,

GOVERNMENT HOUSE,

HONG KONG.

11th May, 1938.

I have the honour to refer to correspondence 4 ending with your telegram No. 52 of the 8th of March

regarding the purchase of certain houses for use as senior officers quarters and to my despatch No. 278 of the 5th of April on the general subject of the

provision of quarters for senior officers.

2.

A further opportunity has now occurred of purchasing another house which is regarded as eminently suitable for occupation by a senior head of department. This is a house built and occupied by Mr. H.H. Pegg, Executive Engineer in the Public Works Department, and situated at No. 534 Magazine Gap. The house is well designed and well constructed and was officially valued at $40,500. Mr Pegg's actual expenditure on the house considerably exceeded that figure but he agreed to accept a price of $40,000 on condition that he is allowed to remain in occupation of the house, paying rent for it in accordance with General Orders, till the end of his present tour. The proposed purchase does not actually add to the houses immediately available for allotment to senior officers but it retains for Government use a house which might otherwise have been sold to an outside

THE RIGHT HONOURABLE,

W.G.A. ORMSBY-GORE, P.C. M.P.,

&c.,

&C.,

&C.

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