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53687/49
236
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14
THE OCLCHIAL OFFICE,
The Church Howane,
Great Beith Street,
Boto 1
6 october, 1949%
I have the honour to refer to your despatch 10.308 of the 22nd December 1948 about the Tai Lam Chang reservoir projeat and do express regret that an earlier reply has not been possible in view of the variety of factors ukich have had to be taken into consideration.
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2. In my balagrum No.1119 of the lat November 1948 I had accepted your view that available reservoir espacity in the Colony osmot be expected to cope with future requirements, but said that before coming to a final decision as to whether the Tai Lam Chang project is the only satisfactory answer to the problem curtain points, which I set out, required further consideration. In your despatch imåer reference you angvered these points. I now asosyt your view that there appears to be no satisfastery alternative to the Tai Lam Chưng project and I agree in principle that it should be pursued, subject to ways being found to oversee the difficulties of finansing it and to the limitations imposed by the Colony's immediate preoccupations with matters of defence.
30 My telegram No.1119 contained a warning of the finsnoial difficulties likely to be involved. In considering yossible sources of finance, asaiskanee from Colonial Development and Welfare fumân mast he ruled out, for it would not be possible to allocate to me Colony from the remaining funds available a sum approaching that required. I have also ascertained that the Colonial Development Corporation considers that this is not the type of scheme which is appropriate for finsssing from their funda.
You will have noted my savingram No.778 of the 16th August 1949 agrowing to the issue of bearer bonds when future loans are rained locally, and my telegram No.1135 approving the 1949/50 Estimates, in which I informed you that I would address you further on a meber of gasstions, including the possibility of reining á loen en the Landon market. I will advert to the relationship between that guastion and the present proposals in the premised commuination; for the present I can only recent, with regret, the warning commered in my telegram No.1119 that it would be unrise at this stage to court en financial assistance from the United Kingdom in finansing these works.
aš
OFFERER
HONG KO
I have the humcar to be
Sir,
Your most
bable servant,
(sad) A. Creach Jones.
!