CO129-520-12 Development of Kowloon Tong Estate 11-12-1929 - 16-6-1930 — Page 8

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Matters, however, reached a crisis about the

middle of 1929. The company was without funds to complete

the few houses remaining unfinished, the Subscribers refused

to contribute further, and the premium due to Government

was unpaid. After mature consideration, the Government,

in the hopes of bringing finality to the various disputes,

re-entered on the property on 23rd August, 1929. Much

discussion followed between the Government, the Company and

the representatives of the Subscribers and the lawyers

acting for the two latter parties. In the end the Government

appointed the Committee, to which reference has already

been made, and on 24th April, 1930, they presented the

enclosed report. This was fully discussed with my

Executive Council and on their advice I approved the

recommendations.

In effect, the result is that the relief

granted amounts to the remission of one quarter of the

premium due for which amount a vote of the Legislature

must be taken. The Government thus obtains less actual

cash than was expected, but obtains the completion of a

"Garden City" scheme which promises to be an outstanding

success.

view of the urgency of the matter I have the

honour to request that Your Lordship's approval of these

proposals, if granted, may be conveyed by telegram.

I have the honour to be,

My Lord,

Your Lordship's most obedient, humble servant,

Here

Governor &c.