CONFIDENTIAL.

Hongkong.

Enclosures.

My Lord,

623

REC

26504

Pro 25 JUL 07. Government House, Hongkong, 22nd June, 1907.

In view of the largely increased estimate of the cost of construction of the Kowloon Section of the Canton-Kowloon Railway reported to Your Lordship in my Confidential Despatch of the 14th instant, I have had prepared by Mr. G. W. Eves, who is the only person in the Colony who can give an expert opinion in the matter, the enclosed estimate of the probable traffic on the Section of the Railway referred to and of the earnings that may be derived therefrom.

2. Mr. Eves has based his calculations of traffic in some particulars on the figures contained in Sir Matthew Nathan's Confidential Despatch No. 4675 of the 11th of January, 1905, under the heading "anticipated traffic and development". He has also considered the figures contained in the report which accompanied my Confidential Despatch of the 9th of March, 1904.

3.

THE RIGHT HONOURABLE

THE EARL OF ELGIN, K.G.,

&c.)

&c...

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