CO129-410 - Governor Sir May - 1914 [3-5] — Page 317

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Enclosure 2.

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Hongkong, 2nd. March, 1914.

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Sir,

Portuguese Housing Scheme.

I beg to acknowledge the receipt of your No.

1209/1912 dated 28th. ultimo.

I gladly accept His Excellency's assurance that he is in sympathy with the objects of the scheme and that he is prepared to recommend the Lease to the Secretary of State for the Colonies subject to the modifications shown in the revised draft regulations which are enclosed in your letter under reply. I have perused these regulations, and accept same subject to an agreed limit being placed on the expenditure of the lessees under the last paragraph of clause H and also subject to the water which it is proposed to supply to the Reserved Area being filtered water. I fe- -el sure that His Excellency will not consider that the lessees are unreasonable in desiring to know what their expenditure may be before works commence for connecting storm water drains etc., to the city sewerage, more especially as in the original conditions submitted by the Government under K this expenditure was estimat- -ed to amount to $8,000 and such a sum if added to the enhanced price now agreed upon for the land would in the opinion of the lessees form too great a burden on the scheme,

I note that the correspondence so far exchanged between the Government and myself has not been submitted to the Secretary of State, and I beg leave to express the hope that the matter may now be referred home as expeditiously as possible, more especially as arrangements have been made for the work to commence, if such can be arranged, before the return of the

writer from home.

I note from the postscript of your letter that the Secretary of State has decided that with regard to compensation for tenants improvements at the pairation of leases the principale

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