92

1

!

we

Cannot say anything about the public works programme, and that he should not say anything about the staff until the Committee have reported.

Of course, we have not got Lockhart's letter to the Committee, so we cannot tell the precise form of his reference to them. Until we have that we cannot tell how far he is to blame!

A. F.

18/2

In tel. 8 of 16 Feb on 416.80 we said that we should be glad if he would reduce the expenditure by $200,000. I think in view of the additional expenditure decided on in 5.710, we should now telegraph in ref to this despatch "The expenditure must be reduced by at least $200,000"

Telegraphs Tur

dazzlefool

20/2

Preferring to your confidential despatch of 17 Feb, the question will await your further despatch, but in the meantime we cannot reconsider our decision that the expenditure should be reduced by at least $200,000.

Expand noting the anomalous action of the Official members. Let me see draft of despatch.

CONFIDENTIAL.

For 44680 (Enclosure Duplicate)

sent. 15/4

CPd. 20. Apr

at once

Government House,

17th February 1908,

Hongkong,

With reference to your telegram of the 18th ultimo, in which you stated that you would be glad if the Estimates of Expenditure for 1908 could be reduced by at least $200,000, I have the honour to inform you that this matter was referred by Sir Henry Blake to the Public Works Committee, as it was clear from the nature of the estimated expenditure that the only heading under which any substantial savings could possibly be effected was that of Public Works Extraordinary.

I have now the honour to transmit for your information the enclosed copy of the report of the proceedings of that Committee on the 31st ultimo, from which you will observe that the Committee declined to recommend any reduction in the programme of public works prepared for 1908, inasmuch as all the works for which provision had been made in the Estimates were of pressing necessity to the Colony.

A Public Works Commission, appointed by Sir Henry Blake some time ago to discuss the adequacy of the Staff of the Department, is at present holding its meetings under the presidency of Mr. Stewart Lockhart, Colonial Secretary, and I am informed by him that its Report should be ready.

THE RIGHT HONOURABLE

JOSEPH CHAMBERLAIN, M.P.,

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