as yet; commenced filling in their Lola.

Under these circumstances the Contractor cannot be blamed for not having completed his contract, in fact it has been against my constantly expressed wish that he has proceeded, or so, with the wall without the necessary precautions, the result being that the greater part of it has been lost in the late Typhoon.

The Contractor himself has failed and the works for some time past have been carried out by his surety, circumstances under which I fear it is impossible now to complete the contract satisfactorily.

I think it is a matter for serious consideration whether the present contract should not be closed and a new contract entered into for the completion of the wall, when the reclaiming is completed.

If this is done it will probably be advisable to build a wall of stronger character which will be able to resist such heavy seas as were experienced during the late storm.

His Excellency will perceive that of £23,864 has still to be expended by the Government upon the Sea Wall and reclamation exclusive of repairs to that portion of the wall which has been paid for in full.

I consider that it would be running a great risk to expend this large sum of money on the wall until the filling in is first completed, and this can only be done in conjunction with the Jenandt's, who at present are doing nothing.

I should advise that as the Government proceeds with reclaiming, they should keep pace with the Jenandt's commissioners.

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