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but to ask the Council to vote the supplementary sums asked for in aid of Public Works Extraordinary. The works they are wanted for are in hand and to stop them would involve claims for breach of contract.

With regard to the votes in aid of Recurrent Works, I cannot see my way to make any reduction in them. The largest items Nos. (1) and (8) are due to unforeseen circumstances.

I propose to lay the votes asked for in these letters before the Council since the Director of Public Works informs me that he cannot stop the works for which they are required.

4.

I have, however, given instructions that the works mentioned in list II attached to Mr. Chatham's minute of the 10th instant be suspended unless I receive your authority to proceed with them.

I would point out, however, that all of these works are urgently required and that Nos. 11 and 12 would open up building sites which would be quickly made use of, and are, therefore, remunerative works.

If you decide that the 13 items in the list shall be proceeded with I shall be obliged if you will communicate your decision by telegraph.

5.

I must express my regret that the instructions contained in your telegram of the 12th of December last to curtail the expenditure on Public Works by $200,000 will, owing to the extraordinary expenditure caused by the Water Famine ($67,000), (the promised report on which is almost ready) Kowloon Waterworks ($35,000), Peak Residence ($27,000)

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