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had to be taken, a very satisfactory contract was entered into with Mr. TSANG KENG, who pushed on well with the work and had completed about 27 per cent. of it by the 31st December. On that date 1,240 feet of the sea wall were in various stages of completion, 1,200 lineal feet of the storm-water drains were laid, 7,500 cubic yards of foundations and 43,600 cubic yards of filling were finished, 640 lineal feet of the seawall was brought up to such a level as to be available for the working of cargo at all states of the tide.

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83. The Harbour Master's old wharf was sold and removed and a temporary jetty on the line of the new seawall provided in lieu thereof.

84. Other contracts were also in progress on these sections during the year, one with Mr. Foo SIK for intercepting and diverting the Morrison Street storm-water drain which is now carried into the drain that discharges opposite Cleverly Street, and another for filling earth into hopper barges, &c. 8,075 cubic yards of dredgings and 19,320 cubic yards of surplus material from Taipingshan were deposited in these sections during the year.

85. Sections 6 and 7.--Work on these sections was considerably delayed, and is still delayed, owing to the decision of Government to construct no more solid stone piers, but to adopt open piers on iron or steel piles. The construction of two important stone piers was included in Contract No. 43 of 1897, and the rubble mound and portions of the concrete block foundations had been completed, while the greater part of the cut granite was ready in the quarries. Eventually, to save large expense and loss, it was decided to complete Pottinger Street pier according to the original design, and this was accordingly done. The work already done on the other pier, that opposite Pedder's Street, had to be undone, the concrete blocks lifted and the rubble mound removed, and this work occupied much of the time of the Departmental Staff of Divers, &c.

86. The change in plan involved the removal by divers of 34,000 cubic feet of concrete blocks weighing about 2,000 tons, and 17,000 cubic feet of rubble hearting, replacing in a different position 16,000 cubic feet of blocks and 20,000 cubic feet of hearting, a work both tedious and difficult. The preparation of a suitable design for the iron pier, which will be 200 feet long and 40 feet wide, with two double sets of steps at each side, and drawing up specifications, calling for tenders and letting a contract for the work, was entrusted to Messrs. CooDE, SON & MATTHEWS, whose great experience in all work of the sort will ensure to the Colony the best design and work that can be got. Mr. MATTHEWS, who has visited Hongkong and understood fully the requirements, took a personal interest in the matter. A contract for the pier, amounting to about £7,500, was entered into in December and the first shipment of material may be expected in a few months.

87. The Departmental work during the year was chiefly in connection with the removal of the foundation of Pedder's Street pier referred to above, which occupied the staff of divers for 190 days, and making good the subsidence on section No. 4.

88. The divers were employed in all 326 days in the year, 297 or over 90 per cent. of which were spent in un-doing or re-doing work which had been considered completed, a heavy and unforeseen expenditure on the estimate.

89. The Pontoon Crane and Block Barges were docked in January and repaired, and the Tug Praya and the Hoppers also received an overhaul and are now in good order.

90. During the year, 4,904 concrete blocks weighing 34,825 tons, were placed in position for weighting the rubble mound by the Pontoon Crane, 363 blocks were set in the seawall,

91. The Dredger and Hoppers were sent to Dock for repairs on the 7th September and were not available for three months. A dredger had to be hired from the Dock Company for 22 days to perform some urgent work. The total quantity of material dredged in the year amounted to 20,740 cubic yards, of which 5,536 were deposited at sea in deep water and 15,204 cubic yards used in the recln- mation.

92. The total expenditure on the Praya Works during the year under the main heads of expen- diture is given in Appendices K and L.

PUBLIC WORKS WHICH SHOULD BE UNDERTAKEN IN THE COLONY WHEN FUNDS ARE AVAILABLE,

93. Buildings.—Under this heading in the report for 1897, the New Law Courts, the Post Office and Treasury, the Governor's Peak Residence, Police Stations at the West and East end of the City and a New Harbour Office were mentioned. It was only found possible to include votes in the Estimates for 1899 on account of two of those works, viz. :-the Governor's Peak Residence, and the West end Police Station, while it remains doubtful whether the finances will permit of even these being proceeded with in 1899. Under such circumstances, it seems useless to add to the list though many other new buildings are more or less urgently required. The proposed New Market at Taiping- shan, however, may be mentioned, plans and estimates for which are ready. The building of markets has hitherto proved distinctly remunerative, an instance of which is the smalt market at Taikoktsui which was finished in December and is now returning 33 per cent. on the capital outlay by the rent of stalls. For the construction of such works a loan is evidently justifiable.