- 2.-

a decision in each particular case. It is now the

policy of the Government to require the use of British

cement to the extent of approximately fifty per cent

of the quantity consumed on public works let out to

contract. Only British cement is used on work

carried out departmentally: this amounts to about 2,500

bags a year.

3.

The cost to the Government of Green Island

Cement, which is the only cement of British manufacture

available at competitive prices was in the early part

of this year $2,60 per bag of 240 250 lbs. and has

been considerably higher in the past, but the Company

has recently offered to reduce its price to $2.35 per

bag if the Government will agree to use Green Island

Cement in fifty per cent of its undertakings. The

average price of Japanese cement of equivalent quality

is approximately $1.55 per bag though quotations as

low as 90 cents per bag have been received.

The special arrangements which have been

made for the supply of cement for the works in connection

with the Shing Mun Gorge dam are set out in the fourth

Teen 11095/23 and fifth paragraphs of my despatch No. 303 of the 26th

May, 1933, and should prove of very considerable

assistance to the Company.

It must not be overlooked in this connection

that although the Green Island Cement Company's cement is referred to as British Cement the raw materials from which

it is produced come almost entirely from foreign countries, nor should it be forgotten that the Green Island Cement Company Limited is the only Cement manufacturing Company

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