CO129-598-1 Tai Lam Chung Reservoir Project 19-12-1945 - 23-6-1948 — Page 97

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SAVING

From the Secretary of State for the Colonies

To the Officer Administering the Goverment of, 195G.KONG............. Date..??. Degomber:.1947:.

1.

ving

Your Staff despatch lio.106 of 3rd September.

Tai Lam Chung Reservoir Project. Preliminary investigation.

In my savingram No.265 of 10th October, 196, I agreed that £5,000 could be regarded as "rehabilitation" expenditure chargeable to loan funds and that further costs of preliminary investigation should form the subject of an application for

Colonial Development and olfare assistance.

From your

telegram ko.622 it appears that a loan up to $150 million

could only met certain rehabilitation expenditure and that

assistance from Colonial Development and welfare fund would

be necessary in the case of development schemes such as the

new reservoir scheme. It therefore seems sore what

inappropriate to charge any "development" expenditure to loan funds and I shall be addressing you separately regarding

the inclusion of certain items such as this in the Loan

johodule, I suggest therefore that an application for

Colonial Development and elfare assistance from the Hong Kong

allocation should now be made to cover these further

preliminary investigations.

2.

If you agree, in order that an application for such

assistance may be prepared, I should be grateful for

information as to whether, and, if so, how much provision

should be made for 1 --

(a) cost of quarters (i.e. if Government quarters are

not available).

(b) air passages,

(c) expenditure in addition to that mentioned in

the enclosure to your despatch under reference,

.g. for subordinate staff, offices, local transport, equipment etc.

/3. You