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the proper execution of the works unless allowed their own way in such matters.

7. With regard to the concluding part of Mr Chadwick's memorandum, we presume there is no intention of divesting the Director of Public Works of his responsibility, but that he will exercise control over the engineers and be held responsible for what is done. It would no doubt be laid down in the agreement that the engineers are to follow his instructions in all respects.

geous.

8.

The proposal is so loosely sketched that we may have misunderstood it, but if we have read it correctly it is not one which appears on general grounds to be advantageous.

Almost any arrangement, however indefensible in theory, will succeed if entered into between competent men in good faith and with determination to work in the interests of the Government; and if these conditions obtain, the scheme now proposed might succeed. It seems to us however to present many difficulties of detail, and if the Government do not care to appoint a special engineer for the works, which we ordinarily regard as the best method, wish to employ Mr Gibbs' firm, we should have thought it better to enter into a contract of the usual kind; the contractors engaging to execute the works either for a lump sum or on a schedule of rates; the ironwork and other materials being indented for from England by the Government and supplied to the contractors; and the Public Works Department exercising the necessary supervision over the quality of the work.

I have the honour to be

Sir

Your Obedient Servant

Malcolm McDonald

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