CONFIDENTIAL.

Government House,

Hongkong, 26th February, 1907.

I have the honour to acknowledge the receipt of Your Lordship's Confidential Despatch of the 28th November last on the subject of the supply of disinfectants to the Hongkong Sanitary Board, with particular reference to correspondence which has taken place between the Colonial Office and Messrs. Snowdon Sons and Company.

2. I am sorry to say that we are not in a position to obtain the English article at the lowest price, viz. 3/6 less 12%, as the local agents, Messrs. Snowdon Sons and Company, are not willing to give the discount allowed to the Colonial Agent-General. The usual price charged is 3/10.

In January, 1905, Messrs. Snowdon Sons and Company asked to be allowed to tender for the supply of disinfectants to this Government. At the time there was a supply of Jeyes Fluid in store, sufficient to last till the end of that year. They were therefore informed, under date of the 27th March, 1905, that as this Government had already made arrangements for the supply of its disinfectants, their tender could not be invited for the time being.

My Lord,

30f.c, making the final settlement under the circumstances and on the basis of competition. Good deal was struck and Love gave us a ... liz farzile.

The fact is that the invoices for these latent articles were worded ... the Justices ... 6.0.280 11385

To underachieve instructions for the Colonial Agent-General we get the lowest English price viz. 3/6 less 12% Lay 3/10.

But to the Colonial Agent-General discount is given because he is expected to push the article by advertisements in Hong Kong.

The hard bargain may be struck on May 2.

I draw attention to the fact that the local agents are not willing to give the discount allowed to the Colonial Agent-General. The usual price charged is not to pay the fancy price asked for said article. Cut-throat competition has sharpened such specification and civilities that in the usual and I assume to ensure ... Rebe...

RIGHT HONOURABLE

THE EARL OF ELGIN, K.G.,

&C. &C. &C...

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DIRECT

REGE 30 MAR 07

43197

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