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With regard to the suggestion put forward in the second paragraph of the enclosure to your letter, I am to state that the Government is at a loss to understand how such tax could be properly distributed seeing that much of the underwriting is done outside the Colony, and I am to enquire how your Committee would propose to give effect to their suggestion.
I have, &c.,
F. H. MAY, Colonial Secretary.
The Secretary, HONGKONG GENERAL CHAMBER OF COMMERCE.
MEMORANDUM FOR CHAMBER OF COMMERCE RE LIGHT DUES.
Reasons for undertaking Typhoon shelter.
The vital necessity and urgency of this work has been pressed repeatedly upon Govern- ment by the Un-official Members of Council, and my predecessor gave a pledge that Government would undertake it without delay, and would contribute a su equal to that subscribed by the Community towards the Typhoon Relief Fund, vis. :-$279.903. The balance of this fund was handed over to Governinent. It amounted to $35,804 and has been earmarked as a fund for relief in similar circumstances in the future. On my arrival in the Colony it devolved upon me to make good Sir MATTHEW NATHAN'S pledge, and when the estimates were discussed in September last Messrs. OSBORNE, and HEWERT again very strongly urged the necessity for the shelter and blamed Government for delay. From what I can gather they voiced the wishes of the Community.
Reasons for delay.
This delay had arisen in the first place owing to a protracted discussion as to the com- parative merits of different sites, and in the second place to the time required for making a reliable estimate, and in endeavouring to find an alternative and cheaper scheme.
Cost.
When the project was first broached a rough calculation for foot rum was made merely for the purpose of contrasting the comparative cost of the different sites proposed, and the one at Mong Kok Tsui was on this basis of calculation put down at $600,000. When this site had finally been decided upon, a detailed estimate was prepared by Mr. BOULTON, than whom there is probably no one better qualified for the task.
It was received last Autumn, and communicated by me to the Council in my speech when introducing the estimates. The amount was $1,400,000, and the great increase was stated to be partly due to a rise in prices of materials, and partly to the fact that the typhoon of September 1906 had shown that a nuch higher and inore substantial sea-wall would be required than had been contemplated, before the experience gained by that disastrous gale. This sum appeared to me to be beyond our present resources, and I referred it back to Mr. BOULTON with a view to the preparation of a less costly scheme which would if possible give partial protection, and be capable of later development as funds permitted. The result was that after careful revision his estimate was increased to $1.540,000 instead of decreased, and that he reported that no partial or progressive scheme was possible. The alternative was to decrease the area of the shelter from 166 acres to 57 acres at a cost of $883.800. The Engineer's report and estimates were referred to the Public Works Com- mittee of the Legislative Council of which the Chairman of the Chamber of Commerce is a member and they unanimously recommended the larger scheme at Mong Kok Tsui,
Method of meeting cost.
After a most careful investigation of the liabilities of the Government and the available Revenue which I need not detail at length in this Memorandum but which on fitting oppor- tunity I shall fully explain, I satisfied my self that I had no alternative but to raise the Light Dues temporarily in the way which has been described to the Chamber of Commerce.