9
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purchaser. Mr. Pegg had in fact received a
substantially higher offer on condition of his
vacating the house at once and would have accepted that
offer if Government had not been willing to purchase.
Mr. Pegg had received a loan from Government
3.
to assist the building of his house and $14,000 of this
loan is still outstanding. This will of course be
repaid on the purchase and the actual cash payment required is therefore only $26,000. While Mr. Pegg remains in occupation of the house, the gross return
to Government by way of rent and saving in rent
allowance will be $2,400 per annum or 6% on the gross
purchase price. The purchase has the approval of
Executive Council.
4.
Looking to the future and bearing in mind the recent difficulties in providing houses for newly appointed senior officers to which I referred in my 3 telegram No.61 of the 4th of March and also the present
acute housing shortage in the Colony owing to the influx of refugees from China, an influx to which this Colony is always likely to be periodically liable, I consider it a wise precaution to take any favourable opportunity which offers of adding to our stock of suitable houses
with and should be glad to learn whether you concur
that policy.
5. In this connection I may mention that I am
considering the advisability of building more Government quarters. It is, I think, certain that Hong Kong will expand after and as a result of the
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