CO129-238 - Governor Des Voeus - 1888 [7-8] — Page 440

* me Chaters

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refly at 5.20 of the Pamphlet.

No. 922.

SIR,

(34)

(14.)

(Colonial Secretary to Mr. Chater.)

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COLONIAL SECRETARY'S OFFICE,

HONGKONG, 7th July, 1888.

I am directed by the Governor to acknowledge the receipt of your letter, dated 4th July, conveying information of the result of the recent meeting of marine lot- holders.

While the unanimity of the lot-holders is so far satisfactory that it would render comparatively easy the carrying out of the proposed scheme of Reclamation by means of private funds, His Excellency desires me to point out that this unani- mity must not be regarded as settling the question either as to the perinission of the contemplated Reclamation or, if it be permitted, as to the mode of carrying it out. As mentioned in my letter of 23rd ultimo, the final decision on these two points rests with Her Majesty's Government. The view taken on the first will probably depend on the advice of the marine engineers who may be consulted on the subject; and the judgment on the second will no doubt be largely influenced by legal opinions obtained with respect to the rights of the marine lot-holders.

His Excellency deems it right to repeat thus emphatically his reference to the necessity of sanction by Her Majesty's Government, not merely because some passages in your letter seem to imply inadequate appreciation of this requisite con- dition, but in order to preclude losses from speculative land purchases made in the belief that that is certain which is by no means certain.

I am to add that whatever may be the ultimate decision; the part which you have taken in initiating the scheme, and the fact of the preliminary surveys having been at the expense of the lot-owners will not of course be omitted from consider- ation.

I have, &c.,

85)

437

3. (1.) Can, I presume, be ascertained with certainty before the work is com- menced, by means of the tenders sent in, and as the responsibility of both design and supervision will in any case fall upon the Government as well as the ny failure on the acceptance of the tenders, I am not sure whether the liability for part of the contractors would not rest with the Government in any case. were so, it would seem that the element of speculation on this score would be as

If this

great when the work is not done for the direct benefit of Government, as if were

for its direct benefit.

4. As regards (2), I should be glad to know more exactly the data for the estimate of $7,910,821 which deducting estimated cost would give to the existing lot-owners an estimated profit of over five and a half millions of Dollars. If the work were done by the Government for its own benefit this profit would of course be lessened by the amount of (3). But it seems to me that the element of speculation on this score would be almost altogether removed by the manner in which it is now proposed that the work should be done. By doing the work in sections, one or at most two at a time, it would be possible to ascertain with a near approach to certainty, what the profit or loss would be, and the decision of the question would be left open to discretion whether the work were proceeded with or It seems scarcely conceivable however that so large an amount as $5,764,593 is not a sufficient margin to cover all contingencies and leave a large profit in addition.

not.

5. These considerations are certain to occur to the Secretary of State, and it is well to anticipate them by a completely satisfactory answer which, I confess, at the present moment I do not see my way to give.

Though I shall require a written reply from Mr. PRICE, I fear that at the present moment he may be more than usually overwhelmed with work, in conse- quence of the late destructive storm; and it might be well therefore that he should now give me his views orally, in order that I may be quite satisfied whether I should not make some further communication of my doubts to the lot-owners before their Meeting on Tuesday next.

27th June, 1888.

G. WILLIAM DES VŒUX.

The Honourable C. P. CHATER.

(15.)

FREDERICK STEWART, Colonial Secretary.

Minute by the Governor for the Surveyor General respecting the Praya Reclamation Scheme.

1. In my minute for the letter of the Colonial Secretary to Mr. Chater, dated 23rd June, 1888. I expressed a doubt whether Her Majesty's Government may not be of opinion that this work should be done by the Government for its own benefit, and the more I think of the subject the more doubtful I become on this point, and the less certain I am that they would be justified in sanctioning the scheme on the terms proposed, at least without the requirement of a large premium per acre from views the frontage lot-owners. As I believe the Surveyor General entertains strong in favour of the proposed scheme as a whole, including the remission of premium. I should be glad to receive a clear statement of his view, with the object of re- moving my doubts, before the meeting of lot-owners takes place.

2. The only reason that appears to me against the undertaking of the work by the Government, is the speculative nature of the project, and the elements of uncertainty which render it speculative appear to be three:-(1.)---The cost of the execution of the work, (2.)—the value of the land to be reclaimed, and (3.)-the amount of compensation which would have to be paid to the owners of the existing frontage.

(

(18.)

(Surveyor General's Report on Governor's Minute of the 27th of June, 1888.)

1. In reply to His Excellency the Governor's Minute of the 27th of June, 1888, I deal first with the questions raised in paragraph 3:---

(a) The cost of the work has been ascertained by means of the Public Works Department schedule of prices, and would be confirmed by the tenders when these come in.

(b.) The responsibility of design and supervision will fall upon the Government as well as the acceptance of tenders, but liability for failure on the part of the Contractors would be provided against in the usual way ie: by requiring from such Contractors a preliminary nouey-deposit by way of security for the proper completion of their contracts. Moreover, from every payment for work done a draw- back of 15 or 20 per cent. can be retained in the hands of the Government.

(c.) Contracts must contain the provision that all damage from typhoons during the progress of the works and for twelve months after their completion, shall be made good by the Contractors at their sole expense.