2.

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the preparation of all drawings, contract documents etc.

and general supervision of the work.

It will be seen from the Consulting Engineers' letter that with

regard to (a) above, they would propose to charge a fee of 11%

on the first £250,000 of the estimated cost of the second

instalment of the scheme and 1% on the balance of that estimated

cost plus the cost of partners' visits. Under (b) above their

fees would be 5% on expenditure up to £250,000 and 41% on the

remainder, plus the cost of partners' visits.

4.

The Consulting Engineers consider, and we agree, that

a visit to the Colony by one of the partners is an essential

preliminary before any steps can be taken to proceed with the

work. Mr. Gourley intends to visit Singapore this autumn,

while Mr. Henderson is due to return to the Colony on November

28th, and we think it is very desirable that Mr. Gourley should,

on the completion of his visit to Singapore, proceed to Hong

Kong so as to arrive there at the same time as Mr. Henderson.

Under this arrangement the cost to the Colonial Government of

a preliminary visit would be a fee of £1,500 plus travelling,

hotel and out-of-pocket expenses. It is, however, important

that a decision regarding this visit should be reached at the

earliest possible date as Mr. Gourley is unable to defer

indefinitely his contemplated visit to Singapore.

5.

We should like to make it clear that the suggested

preliminary visit by a partner is essential whichever of the

two alternatives in paragraph 3 is adopted, and we think that a

decision as to the measure of responsibility which the Consulting

Engineers should accept can very well be left until Mr. Gourley

is in Hong Kong and is in a position to discuss the matter with

the Colonial Government.

I have the honour to be, Sir,

Your obedient servant,

J. Br

for CROWN AGENTS.

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