against the expected saving.
5. I gather, however, that you are satisfied of the competence of the firm in question to carry out this work, especially in view of M. Gibbs' former association with the Public Works Department, and his peculiar knowledge of the details of the scheme. I am accordingly prepared to approve of the work done by Messrs. Denison, Ram and Gibbs, although in this case it would have been better to send out an engineer from home.
6. In any special case it appears to me that the proposed arrangement may require modification in certain important details, to which I invite attention.
7. In your letter of the 15th February last, you propose to base a percentage on the cost of work done in Hong Kong and exclude the cost of certain work, e.g., materials imported from this country. I infer from this that no departure is contemplated from the usual practice of obtaining the necessary materials through the Home Agents for the Colonies, but it would be desirable to make this point quite clear.
8. I consider, moreover, that the proposal to remunerate Messrs. Denison,
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