Enclosure 1

34

Kowloon-Canton Railway Meeting No.

Present:-

C.O

144656

His Excellency the Governor.

The Hon. the Colonial Secretary.

The Hon. the Colonial Treasurer.

The Chief Resident Engineer.

The Local Auditor,

The Railway Chief Accountant.

Chief Resident Engineer's letter of 31st August, 1907.

Extracts of two letters from the Chief Resident Engineer to the Consulting Engineers. Instructions.

26 DEC 07

Pursuant to instructions given at the last Meeting the Treasurer, Local Auditor, and the Chief Resident Engineer had met to consider what steps it was feasible to take to reduce accounting work in the Chief Resident Engineer's Office while maintaining the check necessary under Financial Instructions by the Treasurer and Local Auditor on behalf of Government. Their attention had been especially directed to the documents named in the margin. The Chief Resident Engineer submitted the attached letter (31st October, 1907) which was concurred in by the Treasurer and Local Auditor as embodying their mutual recommendations.

I read the letter through clause by clause, and with the following amendments concurred in the recommendations.

Clause 7. Add the words "Provided that the pay plus bonus does not exceed the actual cost without the bonus". This was merely in amplification of Mr. Ives's meaning in drafting the clause, and was fully assented to by him. He explained that the running expenses would equal or exceed the running expenses plus bonus if time of completion were reduced, and that he did not propose to grant a bonus beyond the difference.

Minute by Governor.

Local Auditor's Minute on the question of Bonus to Miners. Extract of a minute by the Governor of 2nd September, 1907.

Clause 8. Add the words "Provided that they are not already in receipt of any conveyance allowance". The Chief Resident Engineer concurred that this was his meaning, and he did not propose to...

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