LE

58

the Hong Kong Government, which would then be making a

profit on the transaction, ignoring, of course the

risk of financial loss if the Chinese Authorities

ultimately failed to abide by the terms of the transaction. This proposal is, therefore, not

recommended for approval. As the contract for the locomotives is now being placed by the Crown Agents the rejection of the proposal for assistance from the Fund will not have the effect of cancelling

the order.

etc..

The

(2) Cross-harbour water pipe line.

Developments of the water supplies of Hong Kong

have been under consideration for many years, Jarger part of the population lives on the Island of Hong Kong, where the possibility of developmenLe

of water supply are limited. water-works, reservoirs,

exist on the mainland and other extensive

developments there are in contemplation. In order to supplement the water supply on Hong Kong Island it is proposed to construct a submarine pipe line across the harbour to carry supplies from the mainland. The construction of this pipe line was approved in principle in 1924, but this and other water-works were postponed because of lack of funds. In 1928 the Governor proposed the immediate construc- tion of the pipe line, and this was approved in

September, 1928.

1928. The Unofficial Members of the

Legislative Council then objected to the scheme on the ground of expense, and pressed for the adoption of a less oxpensive plan put forward by the local water Engineer. The Governor agreed to

this

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