CO129-553-5 Japanese activities in Macao and Canton 31-1-1935 - 22-11-1935 — Page 52

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such water supply to be capable of supplying the population of Macau, based on an estimated population of 150,000 with 40

litres of water of bacteriological purity per day, and further

under such Contract the Company has to take over the existing

Waterworks of the Colony.

In accordance with such Contract the Company has

entered into a building Contract with Messrs. Malcolm & Co.,

Ltd., Water Engineers, for the reconditioning of the existing

Waterworks and the erection of fresh Waterworks which will

involve a capital outlay of $1,474,000, in addition to which

there has to be paid for the existing Waterworks the sum of

$400,000. The estimated cost of the erection of the new

Waterworks will therefore probably exceed $2,000,000 Hong

Kong currency.

The Corporation is, of course, perfectly prepared

to accept and be responsible for all financial risks in con-

nection with the scheme, but requests that the Government of

this Colony, or the Home Government, will, in accordance with

the recommendations made by certain Officials in this Colony,

undertake to be responsible for any loss which may be incurred

by the Syndicate which may be due to any political or inter-

national change in the Colony of Macau which will prejudice

the Syndicate in carrying out the Concessionary Contract or

may lead to a cancellation of such Contract.

This Corporation therefore has the honour to request

that Government will give the above undertaking, having regard

to the fact that but for the representation made to this Corpora-

tion on this point, this Corporation and the Macau Electric

Lighting Co.Ltd. would not, under any circumstances, have

agreed to finance the scheme.

We have the honour to be,

Sir,

Your obedient Servants,

For the Hongkong & Shanghai Banking Corporation,

sd. V.M. GRAYBURN

CHIEF MANAGER.