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estimate of the cost of construction.
Materials have been accumulated and all preparations made to commence the building of the permanent way as soon as the rainy season is over, which will probably be about the beginning of September. Unless, however, the rate at which land is at present being acquired can be considerably accelerated, work will be stopped in a few months' time for want of land.
Mr. Grove has brought this state of affairs to the notice of the Director-General in an official report.
The progress of the Railway is being hampered in another direction, in this case due to the action of the Chinese Administration.
The Director-General, relying on the clause in Article IX of the Loan Agreement, which provides that, with a view to encouraging Chinese industries, Chinese materials are to be preferred, insists that all orders for railway materials shall first be submitted to the Tong Shan and other iron and steel works for tender. As many of the materials required cannot be supplied by those works, it simply