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STATION BUILDINGS. The Original Estimate was $819,810. The Supplementary Estimate of February 1908 reduced this to $740,291, and the further Supplementary Estimate of March 1909 reduces it still further to $640,291, a total decrease of $179,519. The decrease in the last Estimate is due to the fact that the construction of the permanent buildings at Kowloon will be postponed (with a view, however, to moving the Station further Westwards later on) and that they shall be replaced by temporary buildings at a cost of $55,000. These should therefore apparently be a decrease under this head of $171,603 instead of $1.53. The decision re the Station buildings was not however taken till after December 31st 1908, the date on which the estimate purports to be closed. The cost of the small station at Lofu, the Flag Station at Talpo, and the prolongation of the Taipo jetty, all of which the local Government has initiated, will be covered by the saving effected in having low platforms instead of high ones at the small stations, and therefore do not affect the Estimates.

STATION MACHINERY. The Original Estimate was $35,970. The Estimate of February 1908 made no change in this sum, but the March 1909 Estimate increases it to $40,000, an increase of $4,030 over the Estimate of a year ago (which included the Kowloon Station), for which no reason is assigned.

STATION FURNITURE is similarly increased by $1,590 without explanation.

WORK SHOPS, including Loco tools & plant, & C & W plants, have been entirely omitted in former Estimates as it was undecided whether they would be required. They involve an increase of $120,000 in the Estimates, in which the local Government has concurred (N.B. They involve no Land Purchase).

CONSTRUCTION (Plant). The original provision was decreased by $67 for no particular reason. The Estimate is now increased by $10. Since this vote covers the cost and erection of plant for works, I do not understand why the tunnel cost in 1907 was increased by cost of erection of plant, as stated above by the Chief Resident Engineer.

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