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Volunteers The paid commandant ceases, the volunteer man being given $900 "Command Allowance" to defray incidental expenses of Appointment", and the paid staff officer appears.

page 83. Public Works Recurrent $437,500 the same as for 1907.

page 84-85 Public Works Extraordinary $822,900 see despatch para.9 and debate.

The building of the new Law Courts and Post office continues slowly, much too slowly according to Mr. Hewett. The Kowloon water works and the first section of the Tytam Tuk water works will not be finished as expected in 1907, $44,000 and $15,000 respectively being provided to complete them.

The second section of the Tytam Tuk scheme (estimated cost $3,312,000) for which $200,000 was provided on the 1907 Estimates has not been begun and it is not proposed to proceed with it at present.

The Typhoon refuge estimate is showing an unhappy tendency to grow out of all recognition. After the typhoon of 18th September 1906, the Government promised to contribute to the Relief Fund an amount equal to that raised by public subscription. The subscriptions came to more than was required for relief of sufferers from the typhoon, and so the Government (17744/1907) agreed that the amount which they would otherwise have contributed to the Fund (about $280,000) should be used for "commencing at the earliest possible date a detached breakwater to serve as a typhoon refuge for small craft at the western end of the harbour."

This was estimated at $600,000 last April, and we approved it. Now we find that the work has not been started, that the estimate had risen to $1,400,000 when the Governor Council was considering the estimates. It was then said that the plans were being revised to see if a scheme could be produced which would not involve such heavy expenditure but would still afford substantial protection and be capable of subsequent development. Now the Governor reports that the revised estimate shows not a decrease but an increase to $1,540,000, and "it seems probable that this large expenditure cannot be reduced". $25,000 has been put on the estimates, and the Governor proposes to address us fully on the subject soon - he apparently intends that the cost should be met out of balances and increased light dues. We can only await the proposals, but the position is not satisfactory.

A despatch is promised about funds for railway construction; meanwhile £220,000 repaid by the Viceroy of Wuchang has been advanced to the Railway, and £3.13.0% interest on this is provided together with the interest on a further sum of about £125,000. For the exceptional arrangement under which the railway construction is being financed, see 30971/06.

The estimates have been altered in form, divided into sections - the debt charges and pensions put last instead of first. The result is not, in my opinion, any great improvement; they had much better keep to a uniform.

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