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276 infrequently experienced with this class of staff. Unless the tunnel be let to a responsible and experienced contractor, not only would a large staff of assistant engineers and foremen be necessary, and many risks would have to be taken by the Government, but also the important problem of the importation of labour in sufficient quantity would present greater difficulties.

We would therefore advise that a selected number of contractors of standing should be asked to tender for the contract to construct the tunnel within a given time on the usual conditions.

As regards the excess of the revised estimates now being prepared over Mr. Bruce's, Mr. A. J. Barry has gone into the matter with Mr. Eves. The final figures, however, cannot of course be arrived at until the realignment between Lok Lo Ha and Taipo has been set out and sanctioned.

Apart from the matter of the tunnel, there will be considerable excesses in "Bridges, Track and General Charges". As regards the excess under the head of Bridges, this is partly due to the bridges having been ordered to be built for a double line, and partly to the fact that there are many bridges near Kowloon that have to be built to accommodate the roads scheme laid down by the Public Works Department, which were not contemplated by Mr. Bruce.

The excess under the head Track is due to the rise in prices, but we think that by using Tasmanian or other hardwood sleepers instead of only Jarrah, the excess can be considerably reduced.

As to the excess under the head of General Charges, these were underestimated by Mr. Bruce, but will be largely reduced if the contracts proposed herein be let.

In the light of the information at present available, which we must point out is far from ample, we consider that the cost of the suggested quay wall for deep draught steamers will exceed the estimate of Mr. Bruce and of the Public Works Department.

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