To The Honourable
Sir,
Conclosure 2.
705
Chief Resident Engineer's
office,
Kowloon, 25th September, 1907.
The Colonial Secretary «
Contracts.
With reference to what was said at the
monthly meeting on 9th September with regard to letting larger
contracts, I have the honour to state that I have had an enquiry
from a man who would be willing to take the Tunnel on what
might be called a large petty contract. It would not be on the
same lines as it would have been let to firms like Messrs.
Punchard Lowther and Company or Pearsons and Sons.
Roughly the terms I would propose would be
as follows:-
(a). The Contractor would have the use of all
plant as erected but would pay for coal, upkeep, etc.
(b). The contractor would take over free of
charge all petty tools and timber at site but would have to provide all future requirements giving the Railway Department the first option of supply as they have a stock
of certain necessary articles.
(c). The use of all quarters already erected with
the exception of a few reserved for Railway Staff.
(d). The contractor to take over the agreements
of certain of the miners etc. (Is this legal ?)
(e). The contract being for about $1,000,000 a guarantee of $35,000 to be deposited and 15 per centum to be deducted from the monthly payments till a total of $70,000 be in hand including the guarantee deposited.
If his tender came to be under $1,000,000 there would be a saving in my estimate chiefly in the Staff as the large tunnel office staff amounting to $800 per month
could be greatly reduced.
The