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question of Tunnel contracts, vis.:- whether larger sections could be let to contract and whether real contracts as opposed to what I have called the "piece-work bargain system" could be usefully made, no definite conclusion was arrived at. Mr. Ives stated that no contractor would look at it. I requested the Hon. Director of Public Works to talk over the matter with some of the contractors whom he know, with a view to assisting the Government and the Chief Resident Engineer in this matter and to report the result. Generally speaking I gathered that the Hon. Director of Public Works was strongly of the opinion that the work outside the Tunnel should be let out to contractors in comparatively large contracts. In discussion with Messrs. Wolfe and Barry I gathered - I am not sure whether rightly - they were not at all averse to this. Mr. Eves on the other hand appears averse to such contracts and thinks he can do the work as quickly and more cheaply himself. Time is of course a very important question in the case of the Tunnel, and the capital cost of the whole line lies out at interest until it is completed.

4. Progress reports. I had pointed out in a minute that the present progress report deals only with the bottom heading, and therefore gives no real indication of the progress of the Tunnel, and I asked for an indication of the progress in the top heading and Facing. The Chief Resident Engineer pointed out that the two latter were identical, the Facing necessarily following the Top heading as soon as the shoring was removed. He saw some difficulty in shewing progress in this matter, but after a short discussion a scheme was arrived at, which he considered quite feasible and involving no trouble, by which he would report the weekly progress in the lengths of lining actually completed.

5.

Mr. Ives raised the question of the Hongkong-Kowloon Ferry. He said that he was now preparing the Supplemental Estimates and must know whether or not to include a wharf for steamers and cost of Steamers. That the latter would take 2 or 3 years to...

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