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the general supervision of Mr. Bruce. The party for (2) would con-
-sist of Mr. Valpy and Mr. Sayer (who I understand has recently
been taken on by the Railway Survey) and their chaingen etc. The party for (3) is to consist of Mr. Carpenter of the Public Works Department and (if required) a Chinese Surveyor in the Public
Works Department recommended by Mr. Chatham, with chainmen etc.
Mr. Carpenter is at present employed on the Survey of the road proposed to be constructed across the New Ter-
-ritories from Sha Tau Kok to Ping Shan through Fan Ling and has
completed it from Sha Tau Kok to Fan Ling and beyond through the Hat Sia Gap. This road will be required to bring traffic from the principal valleys of the Territories to the railway at Fan Ling. It presupposes the existence of railway or other good communica- -tion from Tai Po (where the present 14 foot New Territories road eads) through Fan Ling to the Lo Fu ferry on the frontier. Should for any reason the railway not be constructed at once a road must take its place. I have therefore decided that the $50,000 inserted in the Estimates for 1906 for "New Roads in New Territory" should
be devoted not to the cross road above indicated but to making
the bank, bridges, and culverts along the line of the railway survey North of Tai Fo. The line will eventually be laid on this bank, which in the meantime will serve as a road. When the loan for the railway is raised any expenditure on this bank including that for resuming land and the salaries of Mr. Carpenter and of any other Officer lent by the Fublic Works Department will be transferred to it. In the meantime and pending conclusion of a satisfactory arrangement with the Chinese Authorities for the section of the railway in Chinese ferritory we shall have made Some progress on our section in a direction which will improve our communications whatever is the result of our negotiations with China and to an extent which we can well weet out of ordinary
revenue.
Please let Mr. Chatham, Mr. Bruce and Mr.
Clementi
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