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is carried out by direct administration are, of course, also

increased as compared with work done under contract conditions.

(v) Visits of inspection by a partner during

construction would be necessary at intervals of about 12 months,

and for each such visit our fee would be £1,250, plus travelling

etc. expenses.

6.

If you will kindly refer to the terms for the

Shing Mun Scheme set out in our letter to you of the 17th

September 1930, it will be seen that we have substantially

followed those terms: the only difference is the inclusion of

the cost of the supervisory staff which has been dealt with

in paragraph 5 (iv). The estimated cost upon which the lump

sum fee in that case was based was, in fact, arrived at on a

contract basis, and therefore did include the cost of local

supervision.

7. We have written to Mr. Henderson with the view to

arranging a meeting, and after we have discussed matters with

him it may be necessary to ask for an appointment with you.

8.

We return the map and diagram herewith.

We are, etc.,

Binnie, Deacon & Gourley.

Intla.

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