(2)

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estimate was submitted by him, the original estimate of Mr. Gibbs has been upset in so far as it relates to the dam itself and the consequent removal of the filter beds to a different site from that contemplated and other matters. I have requested Mr. Gibbs to submit, as early as possible, an estimate for this altered scheme so that the Government may know to what expenditure it will be committed by the new proposal before entering into contracts.

With regard to paragraph 2 of the Secretary of State's despatch, I do not understand the allusion therein made or how it affects the matter under consideration.

The Praya Reclamation is a work which is being carried out on behalf of the Marine Lot-holders and paid for by them and by which they are benefiting largely. I fail to see any analogy between that work and the Kowloon Waterworks Scheme.

(sd). W. Chatham.

19/8/01.

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