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the consequence that no contract was made in this country.

When therefore it was naked that a scheme should be prensred for

the Kowloon Terminus, in view of the previous communications

and in order to avoid the confusion which would have arisen

from several different schemes, we got into communication with

the above mentioned firm with the result that the schemes A.

and B. with their corresponding estimates were prepared.

The suggested alterations and the provisions as to

the plant which can be made in the Colony as set out in the

Acting Manager's letter, and the discussion as to details

which would be necessary, would make it difficult to ask for

competitive tenders on a fair orbis, and if you agree that K.E.

the Governor desires that a definite quotation should now be

obtained, we recommend that the Railway Signel Co. should be naked to submit a formal tender after consultation with us as

to the aetails mentioned above with a view to a contract being

entered into.

Te note the third paragraph of His Excellency's letter and if our above recommendation is agreed to we would negotiate with the firm for the provision of an expert Bignelling foreman at the same time as the other negotiations

are in progress.

We ore, &o.,

For SIR JOHN "OLSE JARRY, GYSTIR PARTERS,

(Sgd.) K.A.WOLFE BARRY.

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