7.
As regards the conditions of lease, there are three possible courses.
(a) The Government could construct the wharves at
its own expenses and lease them to applicants. (b) The Government could construct the wharves at the expenses of the applicant, who would take them over on completion.
(c) The applicant could construct the wharves under
the supervision of the Government.
I am not in favour of theproposal (a). Persona having vested interests in private wharf and godom companies are jealously watching the Government, prepared to raise the loudest possible outcry at any sign which may be interpreted as the Government going into business on its own account.
Of proposals (b) and (c) I prefer the second alternative. The Government has already quite as much work in hand and in prospect as it can manage, and the supervision of the Port Engineer would ensure the proper construction of the wharves by the private parties con- cerned. Specifications and the appointment of contrac- tors would be subject to the Port Engineer's approval.
526
I shall be glad if the Hung Hom Bay Scheme, as designed by Mr.Duncan, may be referred to Messrs.Coode, Fitzmaurice, Wilson and Mitchell for their adfice, both on the Scheme generally, and more particularly as to the feasibility of making an early commencement with the first two portions to which I have referred. They should be informed that the main reason for the divergence from the design which they put forward is to be found in the urgent demand of shipping companies for the pro- vision of shelter for large vessels from pyphoons. I attach a memorandum by the Port Engineer in this
connection.
9.