100.
ferget
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am in favour of paying cash instead of land which is like- ly to rise very rapidly in value. Sir P.Chater himself told me that the Companies would much prefer to have the land instead of a money payment. He admitted that he be- lieved that the strip fronting Salisbury Road now valued at $3 or 4 would soon be worth £10. am, however, averae to adding to the loan liability of the colony,
which, in my opinion, is already high enough, and it is of oourse out of the question to pay a million dollars out of
ourrent revenue, or even out of reserves since the latter
e
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are hypothicated to the Typhoon Refuge. I suggest, there- fore, that a temporary loan repayable by instalments in
four or five years should be contracted, and that for each of the next four or five years a sum of 2 or 2 lakhs should be set aside for the purpose, other capital expendi- ture being, if necessary, curtailed to meet this charge.
During the present year the probate duties on the estate of Sir V. Keswick will produce a large unexpected windfall so that repayment might commence during the present year.
From a railway point of view the whole money value of
the land purchased for the terminal site should be debited
to Capital account, (vis-à-vis the Chinese section) and
the colony should purchase land to the equivalent amount
on the railway reclamation from the railway.These are mere
book entries, but they are essential for the proper and
correct statement of the capital cost of the railway. AB
this despatch has been written from memory I request that
it may be sent to the 0.A.G. for verification.
If you concur in my proposals I should be glad if you
will cable to Hong Kong.
I have the honown to be,
Sir
Your obralicut hum the Servant
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