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land they acquire will face a broad main road opposite the station, and will be valuable for the erection of
a station hotel for which purpose I believe it is intended to utilise a portion of it.
(d) It was an integral part of the conditions of
the lease of the pier site at Hong Kong to the Star Ferry Company that they should undertake to run a serv- ice of boats to the (then) proposed railway station at Hong - kom,
This would have been costly, and would pro- bably have necessitated the building of three new ferry steamers. This service will no longer be necessary if the terminal site is changed to the proposed location.
I am not as yet aware whether the Government can obta in
any indemnification for cancelling this clause.
These were the main advantages to the group of Com-
panies concerned and there were other minor ones. In
these circumstances I thought that it would be advisable to appoint two unofficial gentlemen of high standing in
the colony to conduct the negociations on behalf of Govern-
ment both in order to carry conviction to the community that the best possible bargain had been made, and in order
to bring home to the other side that they were dealing
with the representatives of the tax-payers - a fact I
find it difficult to impress upon those who are negociat-
thest own
lin
there the latter is expresentine by ing on behalf of Government with Government officials.
was fortunate in securing the services of the Hon. Er Pollock,
K.C., and of Mr Murray Stewart (lately a member of the L.C.)
for this delicate task, for not only were they men of con-
spicuous ability, who enjoy the public confidence in a high
degree, but neither of them had any interest in the group
of Companies concerned.
I
(3)
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