Costs of the proposed additions as suggested. The section shows, by colour, a 10 feet increase, and a 20 feet increase. But, as I propose to adopt the 10 feet head, I confine my remarks to the facts connected with this addition.

Additional volume of water to be stored, and probable cost of adding 10 feet to the Tai Lam Dam wall.

The Dam wall as designed was to be 114 feet. The volume of water such a wall would store would amount to about 349 million gallons: the costs of the works being £166,500: or at a rate of about £444.1.6 per million gallons. To raise the dam-wall 10 feet, or to a height of 124 feet will increase the storage capacity up to about 431 million gallons at a cost of £141,998.

The increase in volume will be about 82 million gallons, and to obtain this increase will cost about £5,498, being at a rate of about £64 per million gallons, as compared with £444, or at a saving of about £410 per million gallons.

This volume of 82 million gallons valued at 1d per thousand gallons will be equal to £2,050 or 2 1/2 years' storage would repay the capital cost.

Price paid for water in bulk in England.

The price for water in bulk ranges from 3d to 1s per thousand gallons when supplied for trade and domestic purposes. But when supplied to shipping, placed on board in tanks and barrels, the maximum price which can be charged reaches 1s6d per thousand gallons.

The Tai Lam water will be so desirable for shipping uses, that there may be a large demand for it. The water will be so pure that its solvent powers may probably be used for cleaning the steam boilers of naval and mercantile vessels whilst they are in port.

Japanese Coal.

Japanese coal can be obtained in Hong Kong at a cost of 19s per ton.

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