Enclosure to Governor's Despatch No.325.

of the 23rd August, 1901.

162

Copy of a Minute from the Hon. Acting Director of Public Works.

To the Honourable the Colonial Secretary.

REC Reef 27 SEF C

With regard to the position of Messrs. Denison, Ram and Gibbs in relation to this work, this has already been so fully described that I can add nothing to former statements.

It is clearly defined in my letter to Messrs. Denison and Ram, a copy of which I understand has been sent to the Secretary of State.

As regards the question of remuneration of the firm, Mr. Chadwick's suggestion comes too late as this has already been arranged to be a percentage on the cost of the works. The items to be included or excluded in the calculation of such percentage are also clearly stated in my letter to the firm.

[It appears to me that Mr. Chadwick's suggestion implies to some extent a somewhat low standard of morality on the part of the firm in question. From personal knowledge of Mr. Gibbs, I have not a shadow of a doubt that any economy which can be practised in carrying out the work will be adopted without the question of its effect upon the firm's commission being allowed to enter into consideration.

I may here point out that, by the alteration in the position and height of the dam proposed by Mr. Ormsby, for which no estimate...

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