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Paragraph 28. The continuance of the Port Development sub-department, and the staff required for it, will be considered on the conclusion of the Vehicular Ferry scheme. It should however be noted that the present executive staff of this sub-department consists, so far as maintenance and minor constructional works are concerned, of only one Engineer and one Executive Engineer, and a considerable part of the time of the latter officer is devoted to the Vehicular Ferry scheme a loan work.

Paragraphs 29-30.-The Crown Lands and Survey Offices have been re-amalgamated, and a reduction of three European posts,-Superintendent of Crown Lands, Second Assistant Superintendent of Crown Lands, and one Surveyor-effected. In view of the fact that Brigadier Winterbotham, who was specially sent out by the Colonial Office to inspect the survey offices of Crown Colonies, reported that the staff of the survey office of Hong Kong should be increased by one European surveyor, it is not considered that further reductions beyond those indicated above should be made.

Paragraph 31.-Government agrees with this recommendation, which does not however call for any action at present.

Paragraph 32.-There was a Town Planning Committee, doing work similar to that. suggested for a Zoning Committee, which ceased to meet after May 1923. Since that date land sales and development have been in accordance with the recommendations of the Committee. The Government regrets that it can envisage no advantage from a permanent zoning committee such as is suggested by the Commissioners. Further town. planning schemes are now being prepared and when they are ready they can be scrutinized by a specially appointed Committee. There is no need for a permanent committee; it is only when large new areas, not hitherto considered, are opened up for development that such a body is required.

Paragraph 33.--Action has been taken in accordance with the recommendations in this paragraph, except that it is considered desirable for the Director of Public Works to continue to sign lease plans.

Paragraph 34.-The Treasurer and Auditor have been instructed to go into this matter as soon as time permits.

Paragraph 35.-The allotment voucher system was instituted as a result of executive engineers incurring unauthorised expenditure. The system does not relieve them of responsibility. Allocations in advance are already made, and Engineers are, so far as the Government is aware, not unduly fettered by the present system.

Paragraph 36.-Whilst Government does not propose to proceed with a central store at present owing to lack of funds for the capital expenditure involved, it does not share the views of the Commission that several small stores, each with their own separate staffs, are more economical than one large store.

Re-

Paragraphs 37-41.-As soon as the post of Technical Secretary has been vacated by its present holder the salary of the post will be made the same as that of an engineer at present it is the same as that of executive engineer and a more junior officer appointed. The same remarks apply mutatis mutandis to the Secretary. garding the amalgamation of the two Assistant Directors of Public Works into one Deputy Director of Public Works, Government is inclined to doubt the wisdom of the sug- gestion. Were the recommendation of the Commission to be adopted it would still be necessary to have one officer co-ordinating all the work on the Island, and another all the work on the mainland. The officers selected would probably be the two senior executive engineers. It is not difficult to imagine that in a few years these senior executive engineers would have grown into Assistant Directors of Public Works, in addition to which there would also be the higher salaried Deputy Director of Public Works. Govern- ment agrees that the Director of Public Works should be relieved of the signing of cheques, and that Assistant Directors of Public Works and Executive Engineers should be given increased authority as regards expenditure, subject to a definite limit. Director of Public Works is preparing concrete proposals which will then be scrutinised by the Treasurer and Auditor. The Commissioners appear to have misconceived some- what the position of Executive Engineers. They are in full control of their sub- departments. The first two sentences of paragraph 40 state exactly the position of the

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