CO129-598-3 Tai Lam Chung Reservoir Project 17-3-1949 - 7-10-1949 — Page 23

(2/48) [16] Wt. 19126/754 50m. 7/48 C.N.Ld. 748

Kirkness

14/9/490

Mr.

Palmer

15 19/490

Mr..

Mr..

Mr.

Wallon see alturation

Permt. U.S. of S.

Parly. U.S. S.

Mr.

1919

Minister of State

Secretary of State

Mr.

DRAFT.

DESPATCH

Your Reference...

53687/49

23

GOVERNOR,

HONG KONG,

NO.

(1) on 53687/48

below

FURTHER ACTION.

|(10)

12)

Sir,

have elé.

I am dirooted to refer to your despatch

No. 142 of the 24th June, 1948, on the subject

of the proposed development of the Colony's

waterworks, and to express regret that an earlier

reply has not been possible in view of the variety

of factors which have had to be taken into con-

sideration.

2 I now approve the scheme proposed in

your despatch, and agree that work upon it should

commence as and when funds are available. In this

connection, however, I must sound a warning note;

in considering the possible sources of finance

for this scheme, I have had to rule out the

possibility of grants from Colonial Development and

Welfare Funds, to which large works of this kind

are inappropriate; a I now have ascertained that the consider that this

Colonial Development Corporation would not be

is not the type of scheme which is appropriate for interested in participating in the scheme, You will

funds

ang from their

15

have noted my saving No. 778 of the 16th August, 1949, agriang concerning the issue of bearer bonds when future

locally

lees loans are raised and my telegram No. 1135

informed approving the 1949-50 Estimates, in which I warned

you that I would address you further on a number

of questions, including the possibility of raising

leans.

I will advert to the relationship between

/ that