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necessary to prolong the catchwater and to carry out a scheme similar to that now recommended at increased cost and under greater difficulties,
3.
The matter has been referred to the Public Works Committee, who unanimously recommend the adoption of the scheme. They also recommend that as the storage reservoir would not then be large enough to contain the water rendered available, steps should be taken at the same time to increase its capacity by raising the dam. A copy of the Report of Proceedings is attached. The question of the feasibility of this project has been submitted to Messrs. Denison, Ram & Gibbs, a copy of whose report I enclose. They consider that
1984 closure 2. Both February, Enclosure 24 March, 1899. The dam may with safety be raised five feet, thereby increasing the capacity of the reservoir by 50,000,000 gallons. The cost of doing this is estimated at $65,000.
4.
I have now to recommend both schemes for your favourable consideration, for I consider that the storage capacity of the reservoir even if increased as proposed will be none too large for the rapidly growing population in Kowloon and New Kowloon. The additional cost involved will be $145,000, of which it may be estimated that twenty-five per centum can be spent this year, fifty per centum in 1905, and the remainder in the following year. I should add that the Director of Public Works believes that apart from the catchwater a sum of $267,000 will be spent upon the Waterworks this year, which is $17,000 over the amount provided in this year's Estimates.
5.
As the construction of the dam has been begun and its proportions must necessarily be increased if these