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The quantity required for the Shing Mun Gorge Dam is estimated

at nearly 600,000 bags and the difference in cost involved

should the present prices be approximately maintained is in

the neighbourhood of one million dollars.

The matter will receive very careful consideration

when the time comes for calling for tenders. It would

appear however that the ultimate choice will be between Japanese cement and the product of the Green Island Cement

Company in which case it will be necessary for the Government

to weigh the claims of the local Company as against those of

the local taxpayer.

I have the honour to be,

Sir,

Your most obedient, humble servant,

W.D. Southoth

Officer Administering the Government.

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