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unfavourable circumstances existent in Hongkong that would make any further liability placed upon the Tramway Company just or reasonable.
Re Branch to Naval Yard. The Tramway Company cannot see its way clear to agree to the construction of this branch. It would entail considerable expense in construction and would necessitate switches and crossings that are very undesirable in a tramway line, for most of the troubles of maintenance of the track and overhead work arise from these places. As the use of the line by the Naval Authorities would be occasional only, men and cars employed in the regular operation of the road would have to be used for this special purpose, and this would cause confusion and irregularity in the running of cars for passenger traffic - its primary purpose.
We cannot see that the results to be gained will in any way justify the additional expense in construction and operation.
The plans for the Tramways will be returned to you to-day.
We have etc.,
(Sd.) Shewan Tomes & Co.