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slower must be the rate of progress owing to the greater

distance spoil has to be removed, and bricks and materials

brought in.

As His Excellency points out in paragraph 12 of

his Despatch above referred to, there are one or two other

details in connection with Mr Bruce's report which require

consideration.

First, the extent and nature of the reclamation

for the Kowloon terminus and shops, which subject we note

is being reported on by Mr J. F. Boulton, and which we need

not therefore touch on at present.

Second, the extent of the accommodation and

workshops at Kowloon, and the necessity for a station at

Lo Fu Ferry.

Both these latter points depend on the construc-

tion of the section of the Railway North of the British

frontier to Canton, and until that matter is definitely

settled, we think we may defer making any remarks.

The last point on which we wish to touch is the

provision of Rolling Stock. We suggest that a sum of

£50,000, say $500,000 should be provided for this purpose. This figure will depend on more accurate information as to traffic which will be obtained during construction, but in the meantime is based on our experience of the cost of Rolling Stock now being supplied to another Railway in China and should we think be amply sufficient for the equipment of the line in the first instance.

In all other respects we consider Mr Bruce's estimates adequate.

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