13

For Conf

Câles present francial fraction

approval of further work

of the

the Shing

and for the

Mun Valley.

cost

being trand for from

474

7/9

& requeste

second part Water works scheme,

of the New Gaol·

a loan

This has been considerably delayed,

but I do not think any real harm has been done.

The difficulty in tracing the file no doubt

arose because I dealt with No. 6 in Mr. Martin's

temporary absence, but did not see No. 7 when

it was later circulated in the ordinary way.

I understand that Mr. Calder saw it, and agreed

that it might await the return of the file.

There are three matters for

consideration:

(1) The water works;

(2) The new gaol;

and,

(3) The expenditure in connection with the naval

arsenal.

As regards the water works, No. 3

indicated that approval to continue with the

second section of the Shin Mun Valley Water Scheme

could not be given until the further

investigation by the engineers had been

completed, and until the water works generally

had been put on a satisfactory paying basis.

I do not think the latter condition was intended

Stuct by

to be interpreted too strongly, and I think

the taking of definite steps in this direction

*

should be accepted as satisfying. As regards

the former, the Engineer, Mr. Binnie, will now have arrived

in Hong Kong, and it appears from the Colonial

Secretary's speech on the draft Estimates

(see

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