CO129-598-1 Tai Lam Chung Reservoir Project 19-12-1945 - 23-6-1948 — Page 5

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The cost of this proposed investigational work could very suitably be covered by a Colonial Development and Welfare grant, which would have, of course, to come out of the Hong Kong allocation. I suggest that we might ask the Governor by telegram whether he would like application to be made for a C.D.W. grant accordingly. If he agrees, a brief memorandum could then be prepared making application on the usual lines.

On a rapid reading of the papers enclosed at 11, I have not been able to find any more precise

estimate of the cost, which the Governor roughly

estimates in No.9 at/500,000. If the necessary

material is not in these papers, perhaps the

Department could consider whether it is possible to give any firmer estimate when submitti the application.

it treaty

1.0825.

26.7.46.

I agree that we should take up the possibility of a C.D. & W. grant with the Governor as Mr. Williams proposes. But at the same time we should seek Treasury approval of the expenditure and to that end should send them a copy of No.9, a copy of No.11 and the enclosures to the latter in original, stressing the urgency of an early decision (the Governor in No.11 says that the investigation of works "should proceed with all despatch"), and ask for authority for the expenditure, explaining that if the Governor, who has been consulted on the point, so recommends, we may apply for a C. D. & W. grant but that otherwise the cost will be met temporarily out of the grant in aid and subsequently debited to the loan when one is raised.

If necessary, the direction given above can be varied on any financial point to fit in with whatever was decided at yesterday's discussions with the Treasury and Mr. MacDougall about the immediate and future financing of Hong Kong.

27.7.46. clum

Mr. L.S. Smith

Would you please see the minutes above relating to the telegram at (9) in which the Governor asks for authority to engage a firm of boring experts in connection with the waterworks scheme and estimates that the cost of their fees plus purchase of boring plant will be about £5,000. I understand from Mr. Woodward (the P.W.D. Consulting Engineer who is now working with the Hong Kong Government Office in Park Street and on whose advice the Governor's telegram has I gather been based) that the term "consultant's fee" is misleading and

that