CO129-447 - Governor Sir May - 1918 [1-3] — Page 312

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Molosure 24

Hon. Colonial Secretary,

Hongkong, 17th. August, 1917.

Sir,

307

Hongkong South Development Schape.

With reference to the concluding paragraphs

of the Crown Solicitor's letter to us of the 28th. ultimo we beg to inform you that the promoters have been for many months endeavouring to obtain tenders from the leading firm of Swiss Engineers, which undertakes the construction of Mountain Railways, for the provision of the rolling stock, rails and equipment and Power Station required for the Deep Water Bay tramway,

In September 1916 that firm stated that there would be on increase of 70 to 80 per cent over normal rates: since then prices and the difficulties of transport have increased enormously, and the Swiss firm now write that

they cannot undertake the work at all unless the British

Government first gives its consent for the import of the

raw material into Switzerland, and, when the finished

machinery &c., are ready for shipment, grants permission for

their export to Hongkong.

We areslso in communication with a leading

Ameriam engineering firm, but have not ng yet received any

quotations from them.

As soon as we obtain any definite prices to work upon we propose to incorporate Company to be known as the "Hongkong South Land and Railway Company Limited with a capital of $1,500,000 and we anticipate that sufficient capital will be subscribed in a very short time, as we have received a large number of promises from substantial

sources.

We note that the Government requires proo@f