1
V
260
therefore the risk could safely be taken of delay in completing the tunnel works we should be disposed to recommend that the departmental system should be adhered to for the whole Railway and that the Consulting Engineers should be urged to take the necessary steps for finding a suitable man for the tunnel work.
7. The question has however become complicated by the fact that if the tunnel is not completed with all possible despatch the Chinese section of the Railway, which we understand is on the point of being commenced, may be ready before the Hong Kong section, and we conclude that this would be very undesirable on political grounds. We regret therefore that we can only come to the conclusion that it is desirable that the tunnel work should be let by contract and therefore to support, although with great reluctance, the recommendations of the Consulting Engineers in this respect. At the same time we feel bound to point out that the construction of the tunnel by contract is almost certain to result in considerably enhancing the cost of the work. Contractors are not likely to take the unknown and uncertain risks of tunnel work without covering themselves amply in their tenders for the risks they are taking, whereas if such risks are exaggerated the Government will have lost the savings which it would effect by carrying out the work itself.
8. Passing now to the further question which has been raised by Sir M. Nathan, viz: whether the conduct of the construction of the whole Railway should not be placed under the Director of Public Works in the Colony, it will be seen from the letter of the Consulting Engineers of the 12th of March, which forms one of the enclosures to this letter, that they will raise no objections to the course proposed if the
-3-
Secretary