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It is requested that in any further communication on this subject the above letters and numbers may be quoted, and the Letter addressed as follows:--

"The Secretary of the Admiralty,

Whitehall,

London

Branch" 3991/31004

Admiralty, S.W.,

74

pt November 190】 -

38406

Sir,

In reply to your letter of 14th October 1901,

No.35270/1901, on the subject of the supply of Stone for

the Extension of the Naval Yard at Hong Kong, I am

commanded by the Lords Commissioners of the Admiralty to

acquaint you, for the information of the Secretary of State

for the Colonies, that the case as presented to Their

Lordships appears to be as follows:-

The right of quarrying stone on the Island of

Hong Kong and on the Main Land at Kowloon is in the hands of

the Colonial Government who put up these rights annually

to tender for a period of one year only.

The Admiralty Contractors, Messrs Punchard

Lowther & Co. did not tender on the last occasion for the

reason, as represented by them, that such a large amount

of stone is required for the Admiralty Works that the

limitation of the time of possession of any Quarry to one

year would prevent them from opening out the Quarries and

erecting Plant on such a scale as would be necessary to

enable them to secure the required supply; in fact that

their lease would expire just as they were beginning to

reap the benefit of their expenditure on Plant and the

preliminary operations necessary to maintain a large

and constant supply of stone.

Under Secretary of State,

COLONIAL OFFICE,

Under

No. 9

Whitehall, 8.V.

# G & S 2371 [834] 20,000 11/00%

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