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(iv). Removal of old Drains.-The removal of the old drains in the neighbourhood of the Harbour Master's Office has now been completed and new drains of proper construc- tion have been substituted where required.

(v). Drainage of Villages.-Considerable improvements have been effected in a number of the villages including Shaukiwan, Wongneichong, Hung Hom and Yaumati. Pro- vision has been made for the extensions which occurred in the two last named villages during the year.

(vi). Peak Water Supply.-A new wrought iron main, 5 inches in diameter, has been laid from the Peak Service Reservoir to Victoria Gap to replace the one hitherto existing which was only 3 inches in diameter. The pipes from the latter will be utilized for the main to be laid along Barker Road.

(vii). Diversion of Outfall Sewer at Hung Hom.-Owing to the purchase by the Dock Co. of the land under which the main outfall sewer from Hung Hom passed, it became necessary to divert the sewer outside the limits of their property. This work is being carried out at the expense of the Dock Co.

(viii). Fire Hydrants at Hospitals.--An additional hydrant has been fixed at the Civil Hos- pital, and a main and hydrant for fire extinction purposes have been put in at Kennedy Town Hospital.

74. Plans, Specifications and Estimates were prepared and Tenders were received during the course of the year for the following works, but it was decided by Government to postpone for the time being any further action with regard to them :-

(i) Diversion of Nullah, Wongneichong Recreation Ground. (ii) Extension of the Post Office.

(iii) Contruction of Black's Link.

75. Complete Plans and Estimates were likewise prepared for the Victoria Jubilee Road, a work to which allusion is made in a later paragraph of this Report.

76. The time of the Engineering Staff was encroached upon to a considerable extent by the pre- paration of the above schemes upon which no expenditure has so far been sanctioned.

PRAYA RECLAMATION WORKS.

77. The progress during the year 1898 on these works was very satisfactory. It is generally admitted that the interests of all concerned are better served by such progress as has been made dur- ing the last few years, than by calling up all the money from the Marine Lot Holders, and by employing a largely increased staff hastening on the work to completion in a short time. The re- claimed areas keep well ahead of building operations.

The following is a brief description of what was done, section by section, during the year.

78. Section No. 1 East.-Contract No. 48 of 1897 with A CHEONG was completed on the 30th June. It comprised the filling in and forming of roadways, laying lime concrete over the sea wall and road margins, surfacing of the roads and footpaths, and forming a temporary street, &c.

79. Section No. 1 West.-The commencement of work at this, the extreme Western end of the present work, has been delayed for some years, owing to the refusal of certain Marine Lot owners to join in the scheme. After full and careful consideration it was decided to take up the work at Gov- ernment expense, leaving matters in dispute in consequence of the above refusal to be settled under the provisions of Ordinance 16 of 1889. A contract for depositing the rubble stone foundation was let to CHAN A Tose on the 13th April. The work proceeded satisfactorily and towards the end of the year the mound was brought up to the required level, but owing to the uncertain nature of the bottom, which consists of a hard crust of detritus from the Sai Ying-poon nullah overlying mud, settlement is anticipated when the weighting with concrete blocks takes place. At present only 60 per cent. of the quantity of rubble estimated from the drawings as necessary has been deposited, there is therefore an ample margin for making good settlements.

80, Section No. 2.-Completed.

81. Section No. 3.--This important section, extending from Wilmer Street to Wing Lok Street, was finally completed under Contract No. 23 by Mr. TSANG KENG in October. The work done in the year consisted in the completion of the seawall, surfacing the roadways and footpaths, laying drain pipes and fixing gullies. The whole area is now available for building.

82. Section No. 4.-This section extends from the Nam Pak Hong pier to the Harbour Master's, Office, and on it the serious subsidence referred to in the Annual Report for 1897 occurred. On the 30th March a contract was entered into with Mr. TSANG KENG to make good the subsidence, which extended over a length of 257 feet, the whole of the necessary material, 6,000 cubic yards, was depo-- sited within the contract time. The completion of this section, except the surfacing of the roads, was then arranged for along with Section 5, and after some delay owing to the extremely high tenders sent in, and some appearance of a combination to run up prices generally, against which a strong stand