CO129-533-4 Hong Kong Water Supply Scheme 28-1-1931 - 20-1-1932_Part_001





CLOSED UNTIL No. 82773 SUBJECT. Hong Kong Previous Water Supply Co129/533/4 92852/30. Subsequent 92653/32 85065 780/13 5,000 7/48 N.M.Ltd. 1 IN TEL 26. Approves. Generally second section. of the Thing Mun Valley Scheine, & urges early instaliation I plant- 42852/30 not clear. Presmally it means tuck ML Gour les advised generally recons section. extincte кроли in favour of да ит Кино to be financed. does int therefore kem pörselle Opreend with the in indent in 72852/30 to assume not unless it is that some scheme the lines (whoses will so through. indent mg assumption is hossible the be forwarder because () it is my a matter of it seems to To access uccessary first-step Whatever modifications are made in the ? Gelspess G.C. Miles We know the Gov. proposes to finance the scheme by raising a loan, or be boefer that C.P.AC. will assist eg. by faying interest on the loon during the construction period or in some other way. must avoid committed piece-meal to a scheme of this magnitude. Even if Mr. Gourley has affroved the enginesing aspects of the scheme, there is important preliminary question as to whether it is really so urgent that it must be undertaken at a time of revious difficulty in H. K. finances. Assuming that is answered in the affirmative, there we then important questions thod of construction, engagement of Consulting Engineers, unsistance from Col. Devel. Fund etc. Alternative draft herewith. J.A. Calder Yes. The financial position is Exally serious 2. 30 for tel. No. 24 G.G. 29.1.71 30 Jan 31 3 Love Tel 32 urgently required, even of will be necessary of it is decided not to proceed with second section ? In view of the Cast Sentence fend the insent b hown Agendă for 72854/30 G.C Miles The extension of the filtration plant has always hitherto been represented item in the second section of the main scheme, see- 72852/175. enclosures to (20) and to (15) on 7285. This telegram frements the matter in entirely different light, and in the cxxmmstances I think we may affare the expenditure of £ 3,000. ? Copy (2/4 (3) with indents to CA, by we have done as formation & inform your ly teley. J. A. Calder To CA (Mundant in 30 m 728537/380125). +2/041.2 +3. To fo- tal-No.33 DESTROYED UNDER STATUTE 18 FEB 1931 that the Ins. a copy of Mor Gourley report. with obsons. Recommend Consulting Engineers should be with the dengn of entrusted and should accept full responsibiltyg for it's stability. The report is whole farewell to Ms. Henderson's scheme, but in vivo o sand the doubt expressed in to the foundation caritimo oth propsand dam site, we cons дартный pority appower the schem at proud. My Handwom ustimato that My Jobs wood constructin works wats рит put it 12 Dam and subsidiary ast $4750000. Du l.E $8,000,000 for the dam and $3500000 for the catchwaters The supprotin thas M. Binnin should visit aufuum fume as further repor oft for coron 4/s. I have somewhat amplified the draft. Mer feeston toace afterwards. J. A. Calder. Sue Minut f L. Gov. Conf (416 8 GoU TEL 105 the auti xenel cos - 24.4.31 J-244-4.31 vised of write to C.A. rf. NG, I No. 7 af ask them Is avamp Mr. Binic To visit and repors, as suppsto in parn. 1/6/51 Palder 20 CA (M2708) - 5 JUN 1931 Витто со arranging ing to leave _Marseille by the 5.5. " Waldera which Coy (1) without endomeres +(10) to God. For inforhat, 11. Zo. O.A.C. Conf (u/ qu/o encls a c/10) 1.1. Jo. 7.31. lo Biinie. report by dated Oct. 1931 13 Gov Conf his reporti by Mor Bunnie that the work be Recommends Supervised by the consulting of the Cle would be glad of as to the form of agreement. Requesti to the engurening approval with the schem aspect of the 1ht. Gov. Conf Reports, inter alia, on the propress of the second part of the shimme men water works scheme 15 To Gov. let. 125 182818/11) 100 87818/31) Mr. Binnie's Report is satisfactory and the Hong Kong Government is very anxious to get approval for this scheme. Their financial position has improved recently and I think we sheabe now give approval to the engineering aspects of the scheme. As is clear from paragraph 4 of the Governor's despatch, the method of providing the funds required is not yet settled, but it is practically certuin that the Colonial Development Fund will be asked to make a grant. As regards the method of construction, the Hong Kong Government now favours the employment of a Resident Engineer supervised by Consulting Engineers. I think that is the best method for this scheme. See paragraphs and 9 of the Crown agents' letter of 9th April (No. 6). The Crown Agents should be consulted before a final decision is reached and communicated to either Hong Kong or Mr. Binnie. Mr. Binnie is called to see Sir John Shuckburgh on the31st. J. A. Calder 22 · 12 ·31 e should presumably lay down that, for the present, there can be no prospect of financing this scheme by raising a loan in the country or by obtaining advances from the C.A. pending the raising of a loan. On this understanding, we might obtain the views of the .. on the proposal that the engineering aspects of the scheme can now be approved. #Rlowell As propond. Om litter to C. A. chold halle clear the point at A. Ichorld I glad Had than then Lasers back life Ice to Binine 31st dec.) 23/14/21 P.T.O. 16 to Cst. (Me 13 m/22032 end) - Caps -12and_29 UE 1931 I saw Mr. Binne the afternoon (with her lowell) & han rerited separately my conversaten with hem. No actin necessary penting серазрывну refly from Crown agents. Putly. 31/12/31 In talder, W 19.12 Si Runell Scott has asked to see to Binnie, who is just both for Hongkong after a mint connected with the water seeme (Si R.S. Ap that the Severn is anxeans that in chould see m he underlands that the C. A. (into areall) I with sel I han said that 21 Dec. at 3.30 PM. jm flean be there too. word with me Mandy mong 12/12/31 17.12.31 DESTROYED UNDER STATUTE Re Internews. To Bennis Le Interviews 17.12.31 18-12-31 Sr. Hamblesse Mis 9. My boyh I Calder; (This is the man who wants to talk about Hongkong: I cent for a menite abart him the cher day). Infe the new date will to all right for you? Joball not be available, 18/12/31 us) kapfect to be in Edinburgh at the New Year, bing back a the morning of Monday that: If gm are soing on the best december. I hold a glad if you could be present when hr Bunnie I have asked m Calder When the papers not come in advance of Ishall be here this inter vicar 24/14/8 25.00 Mr. Einnie called on the 31st December and was seen by Mr.Cowell and myself. He left with me the attached paper summarisinį the position in regard to the Hong Kong water project. I explained to Mr.Binnie that we had written to the Crown Agents on the 29th December (82773/31) only for their comments on the Governor's proposals; and that we must await their reply before any instructions could be sent out to Hong Kong. I promised that I would let him know when such instructions had been sent. As regards the financial aspect of the question, I told Mr.Binnie that there was no prospect of the necessary money being raised in this country. He realised this; but said that he had gathered from the Governor that there would be no difficulty in raising locally as much as would be required. No action necessary pending reply from Crown Agents. I Confell 82s. 31/12/31 Submits alszons prapasals. 31.12.31 / 13 Governm's With reference to paragraphs 9 and 10 of Crown Agents' letter of the 31st of December (21), I spoke to-day on the telephone to Mr. Spiller, who told me that it would take at least three or four months for the Consulting Engineers to prepare the necessary drawings and quantities. He said that if the scheme was to proceed Consulting Engineers were anxious to get their men on the spot by August, which was the best month of the year for work of that sort to begin in Hong Kong. There is, therefore, none too much time if the scheme is to be begun this year. In view of the Governor's undertaking given in paragraph 8 of his Confidential despatch of August the 7th, 1931 (14), to proceed with an adequate scheme of water charges, general approval of the further work on the Shing Mun water scheme need not, I think, be further withheld on that account. The Crown Agents in paragraph 4 of (21) consider that the proposals put forward with regard to the engineering aspects of the scheme can be approved. ? Approve engineering aspects of proposals the carrying out of the work under the direct supervision of the Consulting Engineers; and telegraph to Hong Kong as in draft herewith (for No reference has been made in the draft telegram to possibility of an application for assistance assistance from the Colonial Development Fund. If any such application is intended, it will, no doubt, be mentioned in the further despatch which the Governor has promised (in paragraph 4 of (13)) regarding the method of financing the undertaking. ? After despatch, recirculate for Confidential despatch to Hong Kong, enclosing a copy of the telegram, and embodying the substance of paragraphs 5, 6, 7 and 8 of the Crown Agents' letter (21). And letter to Mr Binne informing him that engineering aspects of the scheme hour been afferaved (388 30 J. Shusthurgh's mumente nimute of 31/12) Hoe gemeron that we should telegraph is in draft or follow up by despatch. The whole turns on finance - finance & we cannot get assume that it will be forcible to push on this on this year. If there there is formal contract with the C.E., the CA. will fremmably in the letter to the C.F. most of the conditions uppested by the H.K. D.P.W. in enclos. to (13), at a later date. but we can take that up J. A. Calder 225 7/1/32 + once (20.13 - 22 Tel Lo.56 for HK. coms (4o. 13 awed) - 8 Jan 1932 Note 25. 23 to for. Conf (w/e22) PESTROYED UNDER STATUE 20.1.32. 20 JAN 1932 CA (me 23)- 2caure Ace 22 WAN 1932 Ac is. (24) with thanks. Put ang. WESTONES UNDER STATUTE 25 You TEZ 88 sex on 92653/32. ES STATUTE tignies to proposal in proncame (23) regarding feex. One engruar Avertible locally. ? Receive with 93639/32 for consor of letters to MiBinnie FCR when the Loan dinaues frofosals contained in Not on that file have been finally effroued golalders. 32 foren 6.5.32ton 82773/31. HONG KONG. Delahunt. Bickle Calder Mr. Parkinson. Mr. Tomlinson. Sir C. Bottomley. 16. 1.32. Sir J. Shuckburgh. Permt. U.S. of S. Parly. U.S. of S. Secretary HONG KONG. Confidential. 92653/32. Downing Street, January, 1932. 8.1.25 (22) I have &c. to confirm my telegram No. 5 of the 8th of January conveying my approval of the engineering works of the Shing Mun Valley Water Works Scheme, and of the eventually work being carried out under the direct supervision of the Consulting Engineers. A copy of the telegram 2 drafts. is enclosed. 2. The Crown Agents for the Colonies in their letter of the 72858/30 18th of September, 1930, a copy of which was enclosed in Lord Passfield's Copy A. for infor LF Fürünfer LE Confidential despatch of the 3rd of outlived October, 1930, have stated that it the fees Rat it would be necessary to pay the Consulting Engineers according to the amount devolving upon them and the degree of responsibility which they might be called upon to accept. The proposal that the work should be directly supervised by the Consulting Engineers who would send out their Resident Engineer for the purpose is in accordance with alternative (b) in the Crown Agents' letter referred to above, and the Consulting Engineers will, therefore, accept full responsibility for the whole of the works, including the preparation of all drawings and general supervision of the works. The fees they would propose to charge would be 5% on expenditure up to £250,000 and 41% on the remainder, plus the cost of the partners' visits. It is not the normal practice normal practice of the formal 3. The Grown Agents state that they mm Aguts to do not normally enter into agreements with in connection with what works of this halune. firms of Consulting Engineers The terms of payment, etc. being usually embodied in (from the a letter, ~ Age to to the firm) and that see no reason for departing departing from their usual practice enclosure 3 to your confid desfated in this case. Nov. will be considered of the 5th f when the letter is drafted. The myjections made in It is feared 4. The Crown Agents fear that considerable delay would arise if the Consulting Engineers ar to obtain the approval of the Hong Kong Government before engaging staff, as suggested in paragraph 11 of enclosure 3 to your It is usual for the Crow despatch of the 5th of NovembeF, Agents to engage Th say that they usualN the staff required on the recommendation of the Consulting Engineers when the work is commenced, additional staff required during the progress of the work being indented for by the Resident Engineer through the Colonial Government. The indents the comm Agents are then being dealt with by themselves in the normal way. he following system has The Crown Kgents have found beere found the following method satisfactory in a number of Colonies when works of magnitude magnitude have been carried out departmentally under the supervision of the Consulting Engineers, Local control rests with the Resident Engineer who is selected by, and is responsible in all technical matters to, the Consulting Engineers. This officer enters into an agreement with the Crown Agents on behalf of the Colonial Government to serve the Government for such a period and on such terms as may be arranged. is for all purposes of discipline and account, the servant of the Colonial Government, to whom he looks for instructions on any matters apart from the technical conduct of the work. For technical matters he acts under the sole instructions of the Consulting Engineers, who are fully responsible for the efficient and economical execution of the works. Similarly, the Resident Engineer's staff are engaged by the Crown Agents, and their salaries, passages, etc. as well as that of the Resident Engineer are payable by the Colonial Government. I have &c., (Sgd.) P. CUNLIFFE-LISTER. Jameson.6 Calder. 7./ Mr. Tomlinson. Codedesent Mão. 11.35 A 8/1/32, Sir C. Bottomley. Sir J. Shuckburgh. Sir G. Grindle. Permt. U.S. of S. Parly. U.S. of 8. Secretary of State. Confidential. DRAFT, TELEGRAM. for conson GOVERNOR HONG KONG Your Confidential despatch 5th November 1931 I approve engineering aspects of Shing Mun waterworks scheme but it must be understood that for present there be no prospect of financing scheme by raising loan in this country or by obtaining advances from Crown Agents pending raising of Will await despatch I note that you will address me further regarding method of financing this undertaking. I approve eventually being carried out under direct supervision of Consulting Engineers Engineers who would send out their own Resident Engineer for that purpose. Despatch follows embodying suggestions as to procedure regarding relations with Consulting Engineers and engagement of staff. Considerable time will be required for preparation of drawings quantities etc. and if you intend to recommend that work should begin in time for full advantage to be taken of the next dry season Consulting Engineers must be instructed at the earliest possible date. In this connection please inform me whether you approve proposed by Consulting Engineers in paragraph 5 (b) of their letter of the 17th September 1930 to Crown Agents which forme sub enclosure to my Confidential despatch of 3rd October 1930. (13 on 72852/30) Am advised that full details of training and experience of any Assistant Engineers and Foremen of Works available should be sent that Consulting Engineers may satisfy themselves as suitability for employment on works. oning to go on 82818/3, Loans for Public Woir. Telegram from the Governor of Hong Kong to the Secretary of State for the Colonies. Dated ?4th December. Received at 11-15 am 24th December 1931. No 252 Confidential. Your talogram of 4th December No 145 Confide ential. I do not consider that it will be necessary to raise any loans for sene months. Date will depend on whether the prezent catiefactory income is maintained. When loan is required I am advised that it will not be necessary to raise the money in England as the money will be obtainable squally cheap here. ALL COMMUNICATIONS TO BE ADDRESSED TO THE CROWN AGENTS FOR THE COLONIES, THE FOLLOWING REFERENCE AND THE DATE OF THIS LETTER BEING QUOTED. Z/E.254/12. LEGRAMS: CROWN LONDON. TELEPHONE: 7730 VICTORIA, COLONIES 4 MILLBANK, WESTMINSTER, LONDON, S.W.1. 31st January 1931 I have the honour to acknowledge the receipt of your letter No.82773/31 of the 29th December regarding the Shing Mun Valley Waterworks Scheme, Hong Kong. 2. This scheme was originally prepared by Mr. R.M.Henderson of the Public Works Department, and is described in his reports of the 8th April 1924, and of the 31st March 1930. In view of the magnitude of the scheme it was thought desirable to submit the proposals to a firm of eminent Consulting Engineers for their advice and the firm of Sir Alex. Binnie, Son & Deacon was selected for this purpose. Mr. Gourley, a partner of the above firm, visited Hong Kong in January 1930, and reported that the scheme was a good one and that the works so far completed had been well laid out. Mr. Gourley expressed the opinion that with certain modifications Mr.Henderson's proposals were the most economical means of securing the additional water supply required. The scheme includes the construction of a dam of considerable height and although Mr.Gourley, when in Hong Kong, examined the foundations for the dam so far as it was possible to do so, he considered that further exploratory work was necessary before the site could be finally approved, and it was suggested that Mr. Binnie, the senior partner of the firm, should visit Hong Kong and make another examination of the foundations after the further exploratory work had been Ausd. 81132 The Under Secretary of State, Colonial office. /completed completed. As the result of Mr. Binnie's inspection of the rock as recently exposed in the trenches, the conclusion has been reached that the site is a favourable one for the construction of the dam. 4. In the foregoing circumstances we think that the proposals put forward with regard to the engineering aspects of the scheme can be approved. 5. We note from paragraph 3 of the Governor's despatch of the 5th November, a copy of which accompanied your letter under acknowledgement, that it is recommended that the work should be directly supervised by the Consulting Engineers, who would send out their own Resident Engineer for the purpose. In our letter of the (II) on 72852 18th September 1930, we outlined the fees that it would be necessary to pay the Consulting Engineers according to the amount of work devolving upon them and the degree of responsibility which they might be called upon to accept. The present proposal is in accordance with alternative (b) of our letter of the 18th September 1930, and the Consulting Engineers will, therefore, accept full responsibility for the whole of the works, including the preparation of all drawings and general supervision of the work. The fees they would propose to charge would be 5% on expenditure up to £250,000 and 41% on the remainder, plus the cost of partners' visits. In the Governor's despatch of the 5th November, it is suggested that an agreement should be entered into between the Government and the Consulting Engineers. do not normally enter into formal agreements with firms of /Consulting Consulting Engineers the terms of payment, etc. being usually embodied in a letter, and we see no reason for departing from our usual practice in this case. We fear that considerable delay would arise if the Consulting Engineers are to obtain the approval of the Colonial Government before engaging staff, as suggested in paragraph 11 of enclosure No. 3 of the Governor's despatch of the 5th November. We usually engage all the staff required on the recommendation of the Consulting Engineers when the work is commenced. Additional staff required during the progress of the work would be indented for by the Resident Engineer through the Colonial Government and the indents would be dealt with by ourselves in the normal way. 8. In amplification of the preceding paragraph we should like to refer to the methods which have been found satisfactory in a number of Colonies when works of magnitude have been carried out departmentally under the supervision of Consulting Engineers. Local control rests with the Resident Engineer who is selected by and is responsible in all technical matters to the Consulting Engineers. This officer would enter into an agreement with ourselves on behalf of the Colonial Government to serve the Government for such a period and on such terms as may be arranged. is, for all purposes of discipline and account, the servant of the Colonial Government, to whom he looks for instructions on any matters apart from the technical conduct of the work. For technical matters he acts under the sole instructions of the Consulting Engineers, who are fully responsible for the efficient and economical execution of the works. Similarly, the Resident Engineer's staff are engaged by ourselves and their salaries, passages, etc., as well as that of the Resident Engineer, are payable by the Colonial Government. We understand that considerable time will be required to prepare the necessary drawings, quantities, etc., for the scheme and in order that full advantage may be taken of the next dry season it is important that the drawings should be proceeded with at the earliest possible date. 10. We note that the Governor proposes to send a further despatch as to the method of financing the under- taking, but we understand from Sir Alex. Binnie, Son & Deacon that the Colony anticipate no difficulty in raising the funds necessary locally. We note from clause 12 of enclosure No. 3 that certain officers are available locally for employment on the works. We think it is important that full details of the training and experience of any Assistant Engineers, Foreman of Works, etc. who may be available should be sent to this country in order that the Consulting Engineers may satisfy themselves that they are entirely suitable for employment on the works. I have the honour to be, Your obedient servant, Je namor Jenä for CROWN AGENTS. HONG KONG WATER. Gourley's Report 1.4.31. Available. Consumption 1930. A.B.3. & D. 31.12.31. Astimated Con- sumption 1945. Hong Kong Island 12.85 m.g.d.' 10.8 m..d. 14.9 m.g.d. Ma inland 6.00 18.85 4.65 17.25 The present available resources are 10.8 m.g.d. which could be increased by the construction of further catchwaters. per annum Average annual growth about 700,000 gallons per dayɅ will absorb all available supplies by 1935, i.e. before Shing Mun Reservoir can be completed. Additional Supplies afforded by Shing Mun 3cheme. 1st Instalment (Reservoir) 64 m. ̧.0. (Tunnel & Catch- waters) (Catchwater) ( ditto. } Scheme recommended subject to suitable foundations being disclosed for the Dam (200 ft, above river bed). Recommends contract to expose the rock. Binnie's Report 21.10.31. Foundation rock sound and endorses the scheme, but confines recommendation to reservoir 190 ft. deep subject to further levels being taken on the ridge. by administration. Recommends that the work be carried out Binnie's Report 24.10.31. Levels of ridge now available and recommends adoption of reservoir 200 ft. deep. Pafer left with me JMr. Binne 31/12/31 Mr. Delahunt. 23. 12.31 Bickle 23 to Mr. Tomlinson. Sir C. Bottomley. Sir J. Shuckburgh. Sir G. Grindle. Permt. U.S. of 8. 82773/31 Hong Kong.in Downing Street, 2 9 December, 1931. Gentlemen, With reference to your letter Parly. U.S. of S. Secretary of State. Z/E.254/12 of the 26th of November THE CROWN AGENTS FOR THE COLONIES. 2nd ✓ 3-0. Fr.Gov.liong Kong 5th Nov. with encl enclosing a copy of a report by Mr.W.J.Binnie, regarding the Shing Mun Valley Waterworks Scheme, Fong Kong, I am etc. to transmit to you a copy of a despatch from the Governor of the Colony bens tons on the subject. 2. The Secretary of State would be glad to be furnished with your observations on Sir William Peel's suggestion that the proposals put forward with regard to the engineering aspects of the Scheme should row be approved. Recirculate to bir Shuckburgh by 31st December that for the 3 I am to state for the present there, no prospect of financing this Scheme by raising a loan in this country, or by the long Kong Government obtaining advances from you pending the raising of a loan. 1 am to request that an early reply may be returned to this letter. I am etc. ener. H. R. O Daring, om Din 2012, (ranger Purses Works). TELEGRAM from the Secretary of State for the Colonies to the Governor of Hong Kong. (Sant 3 p.m., 4th December, 1931.) No. 145. Confidential. Your Confidential despatch of 7th of August. I approve construction of gaol and charging to loan funds and of naval arsenal expenditure being charged to surplus balances. As regards water works it will be necessary to await Binnie's Report. Please inform me at the earliest date possible whether it will be necessary to raise money here next year by loan issue or Treasury bills. CONFIDANTIAL Drip, aga. 82818 (Room for Public Work) Government llouse, Hong Kong, 7th August, 1931. P2808/31 by Lord, I have the honour to acknowledge the receipt of Your Lordship's confidential despatch of the 26th of lay, 1931, on the subject of anticipated loan requirements. 2. I am glad to say that the financial position has improved considerably, and may be described as not unsatisfactory, though the position has been attained to some extent by deferment of certain desirable works. The rapid fall in the sterling value of the dollar early in the year, while causing a large increase in the dollar equivalent of the Colony's sterling commitments, coincided with an improvement in the general situation, and I am glad to be able to report that the conservative estimate contained in the enclosure to my despatch of the 13th of March can now be reconsidered in the light of the experience of the first half of 1931. 3. The actual deficit in the 1930 Budget proved to be no more than 301,173, so that the balance of assets over liabilities on the 1st of January, 1931, THE RIGHT HON URABLE LORD PAJUFIELD, was $9,361,679, of which over $5,500,000 was in liquid form. I regret that the late Treasurer's estimate in October, 1930, which is quoted in the second paragraph of Your Lordship's despatch, was so far wide of the mark. This was largely accounted for by an unexpected increase in land sales and by the fall in the dollar resulting in the appreciation of the dollar value of sterling deposits realized during the year. 4. As regards the current year's working, the revenue up to date is well ahead of the estimated figures, the result of the additional taxation imposed having exceeded expectations. The revenue actually collected up to the 30th of June was $15,700,000, and there is no reason to suppose that the second half will not produce at least an equal amount, more especially as the full effect of certain forms of taxation will not be felt until the second half. It may reasonably be anticipated therefore that the revenue for the full year will not be far short of $31,000,000. The expenditure for the first half of this year will probably amount to about $14,250,000 but for the full year it is anticipated that the estimate of $30,986,800 will prove to be approximately correct. In the absence therefore of any unforeseen eventuality, the Budget should be balanced. As Your Lordship is aware, additional taxation has been imposed, including an increase of 45 in the rates. The effect of this additional taxation is evident from the fact that the revenue, which in 1929 amounted to $234 millions, is expected to reach the figure of $31 millions in the current year. It is true that some of this increase is due to increased land sales and also to the fact that some of the additional revenue is the result of placing liquor and tobacco duties on a sterling basis. Should the value of the dollar rise the receipt in local currency from the latter duties would decrease but this would be set off by a decrease in the dollar equivalent of our sterling commitments. 7. In 1932 I anticipate that the revenue figure for 1931 will be exceeded, as some of the increased have only been in effect for a part of the current year. I adhere to the view that this Colony is by no means heavily taxed, but I consider it inadvisable to increase taxation too rapidly, thereby accelerating the rate of increase in the cost of living. The Colonial Treasurer has subratted proposals for increasing various fees and licences, which are estimated to produce some $600,000 additional revenue. If further revenue is needed, apart from that required to meet additional loan charges, it would be possible further to raise the liquor and tobacco duties, and possibily impose a betting tax. It is proposed to increase the revenue from water, to which I will refer later. No doubt it will be possible to raise the rates still further, but as they have recently been raised by 4, I think it would be better not to make any further increase at present, but to wait until it is required to meet additional loa charges for which, on account of its stability, it is peculiarly suitable. This form of taxation is in my opinion calculated to raise the essential cost of living, and I deprecate too rapid an increase if it can be avoided. 3. I note Your Lordship's instructions that further work on the second part of the shing kun Water Works scheme should await the further consideration of the question of putting waterworks generally on a satisfactory paying basis. This matter is receiving By immediate attention, and I hope to address Your Lordship further on the subject in the near future. I am entirely in agreement that this should be done, but it will take some time for a scheme to have full eïfect, as it entails a more or less universal installation of meters. krogress has already been made in this direction, and 1,523 meters have been installed this year, while further installations will proceed as soon as money is made available for the purchase of additional meters. In view of the greatly improved financial position, and my undertaking to proceed with an adequate scheme of water charges, I trust that Your Lordship will approve generally of the extended scheme being proceeded with at once. Colony suffered very seriously indeed in 1929, owing to a great shortage of water, and any repetition of that year's experience would be a calamity. The consulting engineers have clearly shown that the present supply will in a very few years be inadequate, and I consider it essential that the extended scheme should be taken in bland as soon as possible. I venture to urge very strongly the reconsideration of Your Lordship's view regarding the financing of the construction of a new Geol. The work therefore should be fully appreciate that as a general principle loans should be confined, as far as possible, to works of a reproductive nature, but this has not been a rigad rule, and I think that there is justification for permitting this work to be paid for out of lom. is a work of the greatest urgency: the conditions in the present gaol are very bal indeed, and the impossibility of properly segregatin, certain types of prisoners has led to a great deal of trouble during the past few months. taken in hand at once, and not avait the imposition of further taxation vo ncet the cost. In the next place, I submit that it is not unreasonable that the cost of such an institution should be spread over a longer term of years. The life of the new buildin; will probably be at least sixty years, while the sinking fund on the loan, from which I submit it should be paid, will effect repayment in 28 years. I would further point out that, if additional taxation be imposed to cover the cost, it will mean that we shall have to impose taxation amounting to 25. more than the actual cost, owing to the fact that such additional revenue will be liable to military contribution. It is extimated that the gaol will cost $4 millions, to be spent at the rate of $1,500,000 a year. To meet this expenditure by extra taxation would mean the raising of an additional $1,375,000 a year, a burden which I consider too heavy for the present taxpayers. If, as I hope, Your Lordship will accept these views, I shall be glad if a telogram may be sent to that effect, for I am most anxious to proceed with the work at once. I my say that I understand that it has been approved that the cost of erecting a new gaol and a hospital in Kenya be charged to a loan. 10. I would refer to Your Lordship's telegra No.4 of the 6th of January, 1931, stating that Your Lordship does not approve of charging to surplus balances or loan the cost of the proposed I arrangements in regard to the Naval Arsenal. venture earnestly to ask for a reconsideration of this decision and for Your Lordship's authority to charge it to surplus balances. The money required will be vecogered in a short time by the sale of the land thus rendered available and it therefore soeus inequitable to raise additional taxation to cover the cost of such e scheme, 11. In view of the improved financial position, and the fact that it is almost certain that the 1931 Budget will be balanced, I have come to the conclusion that there will be no necessity to resort to a loan this year, as it will be possible without embarrassment to continue to advance money for approved loan works from surplus balances. If the anticipated revenue for 1932 is realised, and there is no sbnormal expenditure, it might even be possible to finance the remainder of the present approved loan programme without borrowing next year. If however Your Lordship will approve of further work on the second part of the shing Lumater Works scheme proceeding, and of the gaol being paid for from a loan, it may be necessary to arrange for the issue of Treasury bonds, or for a temporary overdraft early next year, and for a loan towards the end of the year to provide funds for the additional works and to repay the Public Works loan of 1927. In any event, a further loan may be desirable for the latter purpose with a view to securing money at a lower rate of interest. I enclose a statement, setting out our present and anticipated liabilities, and indicating how these can be met from surplus balances up to the end of 1932. 13. I may add that private companies are being invited to provide ferry boats for the Vehicular Ferry and I do not anticipate that Government will be called upon to make such provision. I have the honour to be, by Lord, Your Lordship's most obedient, humble servant, (sd.) W. Feel. Governor, &c. that Revenue & Brpenditure 1931 & 1932. Cash balance on 30th June, 1931 Liabilities. Estimated Expenditure from surplus balances on account of 1 oan works for 6 months ending 31/12/31. Estimated excess of Expenditure over Revenue for above 6 months Estimated cash balance 31/12/31. on the assumption that the budget for 1931 will be balanced) Liabilities. Expenditure from Surplus balances in 1932. 6,260,000 1,200,000 1,500,000 2,700,000 3,560,000 Approved Loan works. Shing Mun Valley Water Scheme.$432,000 Aerodrome Aberdeen Valley Water Scheme Vehicular Ferry 1,558,000 Less final instalment from Imperial Government in- respect of Aerodrome £30,000 $600,000 Balance of amount due for erection of hangar and slipway approximately £8,000 plus $141,000 Estimated Cash balance 31/12/32 on) the assumption that the budget for 1932 will be balanced. $2,903,000 Shing Mun Valley Scheme Further expenditure-for which authority is sought in despatch of 7. 8. 31. Second Section. Expenditure in $ 250,000 New Gaol Naval Arsenal Scheme 1,500,000 1,000,000 $2,760,000 No. CONFIDENTI AL. GOVERNMENT HOUSE, HONG KONG, 5th November, 1931. Encl. No. 1. Encl. No. 2. With reference to Lord Passfield's confidential (7) despatch of the 24th of April, 1931, on the subject of © inorriciclub the Shing Mun Valley Waterworks scheme, I have the honour to enclose the accompanying copies of two reports by Mr. W.J.E. Binnie, senior partner of Messrs. Sir Alexander Binnie Son and Deacon, Consulting Engineers, together with a forecast of the probable expenditure to be incurred on the construction of the Gorge Dam spread over a period of five years. I discussed this matter with Mr. Binnie on the 23rd of October at Government House, the Colonial Secretary, the Director of Public Works and Mr. Henderson being also present. At the interview Mr. Binnie proposed that subject to certain details not then available the top water level of the dam should be raised to 625 0.D. He estimated the total cost of the scheme including engineering and supervision at $9,200,000. It will be seen from his later report of the 24th of October that he finally approved the level of 625 0.D. THE RIGHT HONOURABLE J. H. THOMAS, M.P., Enclosure No. 1. Hong Kong, 21st October, 1931 The Hon. Director of Public Works, Hon3 Kong. Hong Kong Water. shing Hun Dam Site. My partner, Mr. Gourley, reported in favour of the Shing Mun Scheme as proposed by Mr. Henderson in 1924 after a review of the further needs of the Colony and other possibilities for increasing the water supply of Kowloon and Hong Kong. His conclusions are set out in paragraph 70 of his report to the Crown Agents of the Colonies dated 1. 4. 31. In paragraph 42 of this report he pointed out that in view of the magnitude of the structure it would be necessary to explore the foundation conditions before we could make any final recommendation and advised that exploratory work should be promptly put in hand, which work would also be necessary before dra ings could be prepared. In paragraph 44 he endorsed lir. Henderson's view that the Shing Mun Valley should be developed to its utmost. It had originally been proposed to store water to a maximum depth of 175 feet which would form a storage reservoir of 2,000 mill. gall. gross, or about 1,850 mill. gall. above the level at which the water could be discharged by gravity into the conduit. My raising the top water level to 625 0.D., i.e. another 25 ft. it was pointed out that the storage capacity would be increased by about 1,000 mill. gall. མན་པ་ལས་ Acting on the advice which was then given a Contract was let on the 30. 4. 31 for the exploratory work in order to ascertain the depth of soft material overlying the rock and the nature of the rock by means of a trench right across the valley opened along a line selected by Mr. Gourley as possibly representing the best position for the Dam, and work has been continued on this Contract up to the date of writing. It was arranged with the Crown Agents that Mr. Jinnie should inspect the rock when exposed, before final approval was given to the selection of this site, as the Dam would oe of such a height as to impose heavy stresses on the foundation material. Mr. Binnie accordingly arrived in Hong Kong on the 8th instant and has made four inspections of the rock as now exposed in the trench and has also examined the adjacent outcrops and the trenches excavated prior to Mr. Gourley's The conclusion at which he has arrived is that the sita is a favourable one for the construction of a dam of the proposed height and therefore he is able to confirm our previous report. The Reservoir when formed would be retained in a basin the Southern boundary of which, between the site of the dam and Pineapple Pass, is determined by the Ridge separating the Shing Mun Valley from the Gin Drinkers' Bay drainage area. If the Dam were of such a height as to impound water up to 625 0.D. there would not be sufficient freeboard between the Reservoir level and the top of this Ridge at one point, and Mr. Binnie is of opinion that it would not be advisable advisable to assume at present that the water was raised by the Dam above 615 0.D. It would be feasible to adopt the highest level of 625 0.D. but further works would be involved the extent of which cannot at present be determined, but it is not anticipated that these would be of any great magnitude and would be covered by the estimate given in our previous In this report, paragraph 64 and 65, two alternative methods of carrying out the work are dealt with and we would recommend that the work be carried out by administration, Sub-contracts being let for various portions of the work wherever possible. If there are any other points with which you wish Mr. Binnie to deal, he would be pleased to do so by interview. We have the honour to be, Your obedient servants, (sd.) Alex. Binnie Son & Deacon. Hong Kong, 24th October, 1931. The Hon. Director of Public Works, Hong Kong. Hong Kong Water Shing Mun Dam Site. With reference to the last paragraph but one on page 2 and the succeeding paragraph of my report dated October 1931 the sections across the ridge have now been taken and I am of opinion that it will be feasible to adopt 625 0.D. for top water level, and that the works involved to attain this object will be covered by the estimate already submitted. I have the honour to be, Your obedient servant, (sd.) W.J.E. Binnie. Enclosure No. 1. Hong Kong, 21st October, 1931. The Hon. Director of Public Works, Hong Kong. Hong Kong Water. Shing Mun Dam Site. My partner, Mr. Gourley, reported in favour of the Shing Mun Scheme as proposed by Mr. Henderson in 1924 after a review of the further needs of the Colony and other possibilities for increasing the water supply of Kowloon and Hong Kong. His conclusions are set out in paragraph 70 of his report to the Crown Agents of the Colonies dated 1. 4. 31. In paragraph 42 of this report he pointed out that in view of the magnitude of the structure it would be necessary to explore the foundation conditions before we could make any final recommendation and advised that exploratory work should be promptly put in hand, which work would also be necessary before drawings could be prepared. In paragraph 44 he endorsed Mr. Henderson's view that the Shing Mun Valley should be developed to its utmost. It had originally been proposed to store water to a maximum depth of 175 feet which would form a storage reservoir of 2,000 mill. gall. gross, or about 1,850 mill. gall. above the level at which the water could be discharged by gravity into the conduit. My raising the top water level to 625 0.D., i.e. another 25 ft. it was pointed out that the storage capacity would be increased by about 1,000 mill. gall. Acting on the advice which was then given a Contract was let on the 30. 4. 31 for the exploratory work in order to ascertain the depth of soft material overlying the rock and the nature of the rock by means of a trench right across the valley opened along a line selected by Mr. Gourley as possibly representing the best position for the Dam, and work has been continued on this Contract up to the date of writing. It was arranged with the Crown Agents that Mr. Binnie should inspect the rock when exposed, before final approval was given to the selection of this site, as the Dam would be of such a height as to impose heavy stresses on the foundation material. Mr. Binnie accordingly arrived in Hong Kong on the 8th instant and has made four inspections of the rock as now exposed in the trench and has also examined the adjacent outcrops and the trenches excavated prior to Mr. Gourley's The conclusion at which he has arrived is that the site is a favourable one for the construction of a dam of the proposed height and therefore he is able to confirm our previous report. The Reservoir when formed would be retained in a basin the Southern boundary of which, between the site of the dam and Pineapple Pass, is determined by the Ridge separating the Shing Mun Valley from the Gin Drinkers' Bay drainage area. If the Dam were of such a height as to impound water up to 625 0.D. there would not be sufficient freeboard between the Reservoir level and the top of this Ridge at one point, and Mr. Binnie is of opinion that it would not be advisable advisable to assume at present that the water was raised by the Dam above 615 0.D. It would be feasible to adopt the highest level of 625 0.D. but further works would be involved the extent of which cannot at present be determined, but it is not anticipated that these would be of any great magnitude and would be covered by the estimate given in our previous In this report, paragraph 64 and 65, two alternative methods of carrying out the work are dealt with and we would recommend that the work be carried out by administration, Sub-contracts being let for various portions of the work wherever possible. If there are any other points with which you wish Mr. Binnie to deal, he would be pleased to do so by interview. We have the honour to be, Your obedient servants, (sd.) Alex. Binnie Son & Deacon. Hong Kong, 24th October, 1931. The Hon. Director of Public Works, Hong Kong. Hong Kong Water Shing Mun Dam Site. With reference to the last paragraph but one on page 2 and the succeeding paragraph of my report dated October 1931 the sections across the ridge have now been taken and I am of opinion that it will be feasible to adopt 625 0.D. for top water level, and that the works involved to attain this object will be covered by the estimate already submitted. I have the honour to be, Your obedient servant, (sd.) W.J.E. Binnie. Enclosure No. 2. SHING MUN DAM. Forecast of Probable Annual Expenditure Including Supervision and Engineering. 1st Year $1,600,000. $2,300,000. $2,300,000. $2,300,000. 700,000. $9,200,000. (sd.) W.J.E. Binnie. 22. 10. 31. Enclosure No. 3. Suggestions for consideration by Crown Agents when drawing up agreement with Consulting Engineers. Consulting Engineers to advise upon design and to supervise the Construction of the Works in connection with the erection of a Dam at the Shing Mun Gorge. 2. Consulting Engineers to prepare all necessary Designs, Detail Drawings, Specifications, Bills of Quantities, Schedules and any other particulars to enable the said Dam to be carried out at the earliest possible date. Consulting Engineers to be free to carry out the Works by Contract, Sub Contract or Direct Labour subject to permission from Hong Kong Government after particulars have been submitted. The Consulting Engineers shall supply the Government with two copies (prints) of the General Drawings for the Works before work is commenced and on completion shall furnish two copies of drawings of the Works as carried out showing foundations, drainage etc. with finished levels. Any alterations or additions to the Works which may alter the Estimated Cost or alter the general nature of the Structure should first be submitted to the Colonial Government before being carried out. 6. Fees and mode and time of payment to be stated. Period of Consulting Engineers Contract with Government to be set, say, five years. Notice to be given six months before expiry and if any extension necessary to be by further mutual agreement. One of the Consulting Engineers to visit the Works once in every year during the Construction of the Works. 8. Dispute or difference arising over the Works between Government or Consulting Engineers and Contractors or Sub Contractors, Consulting Engineers to be Arbitrators without extra fee. 9. Any dispute between Colonial Government and Consulting Engineers to be submitted to Crown Agents for arbitration. Consulting Engineers to submit a schedule of staff deemed necessary with salaries and allowances which will not be exceeded and such to be incorporated in the agreement. 11. The Consulting Engineers to engage such staff subject to approval of the Colonial Government both of the persons selected and the remunerations offered. The agreements of all Officers to be drawn up to the approval of the Colonial Government and must clearly state all salary and allowances, leave privileges etc. and be determinable within three months' notice. 12. Where suitable Officers are already in Government Service and can be spared they should be offered employment in which case they would be seconded and any necessary arrangement or agreement would be drawn up in Hong Kong. All but a very few positions could be filled from the Colonial Service at least until the Public Works Extraordinary programme is extended. This will save very considerably all round. All fees expenses of disbursements to be paid to the Engineers in pounds sterling. All staff to be under the sole direction of the Engineers but Colonial Government to have the power to dismiss any Officer subject to the Consulting Engineers' approval which shall not be unreasonably withheld. Enclosure No. 3. Buestions for consideration by Crown Agents when drawing up a feement with Consulting Engineers. Consulting Engineers to advise upon design and to supervise the Construction of the Works in connection with the erection of a Dam at the Shing kun Gorge. 2. Consulting Engineers to prepare all necessary Designs, Detail Drawings, Specifications, Bills of quantities, Schedules and any other particulars to enable the said Dan to be carried out at the earliest possible date. Consulting Engineers to be free to carry out the Works by Contract, Sub Contract or Direct Labour subject to permission from Hong Kong Government after particulars have been submitted. 4. The Consulting Engineers shall supply the Government with two copies (prints) of the General Drawings for the Works before work is commenced and on completion shall furnish two copies of drawings of the Works as carried out showing foundations, drainage etc. with finished levels. 5. Any alterations or additions to the Works which may alter the Estimated Cost or alter the general nature of the Structure should first be submitted to the Colonial Government before being carried out. 6. Fees and mode and time of payment to be stated. Period of Consulting Engineers Contract with Government to be set, say, five years. Notice to be given six months before expiry and if any extension necessary to be by further mutual agreement. 7. One of the Consulting Engineers to visit the Works once in every year during the Construction of the Works. 8. Dispute or difference arising over the Works between Government or Consulting Engineers and Contractors or Sub Contractors, Consulting Engineers to be Arbitrators without extra fee. 9. Any dispute between Colonial Government and Consulting Engineers to be submitted to Crown Agents for arbitration. Consulting Engineers to submit a schedule of staff deemed necessary with salaries and allowances which will not be exceeded and such to be incorporated in the agreement. 11. The Consulting Engineers to engage such ataff subject to approval of the Colonial Government both of the persons selected and the remmerations offered. The agreements of all Officers to be drawn up to the approval of the Colonial Government and must clearly state all salary and allowances, leave privileges etc. and be determinable within three months' notice. 12. Where suitable Officers are already in Government Service and can be spared they should be offered employment in which case they would be seconded and any necessary arrangement or agreement would be drawn up in Hong Kong. All but a very few positions could be filled from the Colonial Service at least until the Public Works Extraordinary programe is extended. This will save very considerably all round. All fees expenses of disbursements to be paid to the Engineers in pounds sterling. All staff to be under the sole direction of the Engineers but Colonial Government to have the power to dismiss any Officer subject to the Consulting Engineers' approval which shall not be unreasonably withhold. Encl. No. 3. 3. With regard to paragraph 5 of Lord Passfield's despatch under reference the possible methods of carrying out the work were discussed at the meeting of the 23rd of October. As the result of this discussion I recommend that the work be carried out without a major contractor and that it be directly supervised by the consulting engineers who would send out their own resident engineer for the purpose. It will be necessary for an agreement to be entered into between this Government and the consulting engineers and I should be glad of the advice of the Crown Agents as to the form this agreement should take. It was understood from Mr. Binnie that the Crown Agents have previous experience of agreements of this kind. I enclose in duplicate certain suggestions from the Director of Public Works for consideration by the Crown Agents in drawing up the agreement should you approve the proposed method of carrying out the work. 4. I will address you further as to the method of financing the undertaking in the light of your circular despatch of the 19th of September, 1931, regarding the financial position in England, but in the meantime I shall be glad to receive your approval of the proposals put forward with regard to the engineering aspects of the scheme in order that it may be possible to begin the work without delay when the question of the provision of funds has been settled. I have the honour to be, Your most obedient, humble servant, Governor, &c. ALL COMMUNICATIONS TO BE ADDRESSED TO THE CROWN AGENTS FOR THE COLONIES, THE FOLLOWING REFERENCE AND THE DATE OF THIS LETTER BEING QUOTED. 2/E.254/12. TELEGRAMS: 'CROWN LONDON." TELEPHONE: 7730 VICTORIA, COLONIES 4 MILLBANK, WESTMINSTER, LONDON, S.W.1. 26th November 1931. I have the honour to refer to your letter No. 82773/31 of the 5th June, wherein we were requested to arrange for Mr. Binnie, a Partner of the firm of Sir Alexander Binnie, Son & Deacon, to visit Hong Kong in connection with the Hong Kong Water Supply Scheme. We now enclose, for your information, a copy of a report dated October, 1931, which Mr. Binnie, on behalf of his firm, submitted to the Director of Public Works whilst he was in the Colony, regarding the Shing Mun Dam I have the honour to be, Your obedient Servant, The Under Secretary of State, Colonial Office. for Crown Agents. Hong Kong. October 1931. The Min. Director of Public Works. Hồng Kông. Hon 1.0 Bater. Shin Mun Dam Site. My partner, Mr. Gourley, re orted in favour of the Shing Mun Scheme as proposed by Mr. Henderson in 1924 after a review of the further needs of the Colony and other possi- bilities for increasing the water supply of Kowloon and Hons dong His conclusions are set out in paragraph 70 of his report to the Crown Agents of the Colonies dated 1.4.31. In Paragraph 42 of this report he pointed out that in view of the magnitude of the a tructure it would be necessary to explore the foundation conditions before we could make any final recommendation and advised that exploratory work should be promptly put in hand, which work would also be necessary before drawings could be prepared. In Paragraph 4# he endorsed Mr. Henderson's view that the Shin Mun Valley should be developed to its utmost. It had originally been proposed to store water to a maximum depth of 175 feet which would form a storage reservoir of 2,300 mill. gall. ross, or about 1,850 mill. gall. above the level at which the water could be discharged by gravity into the conduit By raising the top water level to 625 U.D., i.e. another 25 ft. it was pointed out that the storage capacity would be increased by about 1,000 mill. gall. Acting on the advice which was then given a Contract was let on the 30.4.31. for the exploratory work in order to ascertain the depth of soft material overlying the rock and the nature of the rock by means of a trench right across the valley opened along a line selected by Mr. Gourley as possibly representing the best position for the Dam, and work has been continued on this Contract upto the date of writing. It was arranged with the Crown Agents that Mr. Binnie should inspect the rock when exposed, before final approval was given to the selection of this site, as the Dam would be of such a height as to impose heavy atresses on the founation material. Mr. Binnie accordingly arrived in Hong Kong on the 8th instant and has made four inspections of the rock as now ex oded in the trench and hos also examined the adjacent outcrops and the trenches excavated prior to Mr. Gourley's The conclusion at which he has arrived is that the site is a favourable one for the construction of a dam of the proposed height and therefore he is able to confirm our previous report. The Reservoir when formed would be retained in a basin the Southern boundary of which, between the site of the dam and Pineapple Pass, is determined by the Hidge from the Gin Drinkera' Bay separating the Shing Mun Valley drainage area. If the Dum were such a height as to impound water up to 625 U.D. there would not be sufficient free- board between the Reservoir level and the top of this Ridge at one point, and Mr. Binnie is of opinion that it would not be advisable to assume at present that the water was raised by the Dam above 61ɔ 0.D. It would be feasible to adopt the highest level of 625 0.D. but further works would be involved the extent of which cannot at present be determined but it is not anticipated that these would be of any great magnitude anu would be covered by the estimate given in our previous In this report Paragraph 64 and 65 two alternative methods of carrying out the work are dealt with and we would recommend that the work be carried out by administration sub-contracts being let for various poritions of the work wherever possible. If there are any other points with which you wish Mr. Binnie, to deal, he would be pleased to do so by interview. We have the honour to be, Your obedient Servants, SIR ALEX: BINNIE SON & DEACON. W.T.E.B, Hong Kon 24th October, 1931. The Hon. Director of Public Works. Hong Kong. Hong Kong Water - Shing Mun Dam Site. With reference to the last paragraph but one on page 2 and the succeeding paragraph of my report dated October 1931, the sections across the ridge have now been taken and I am of opinion that it will be feasible to adopt 625 0.D. for top water level, and that the works involved to attain this object will be covered by the estimate already submitted. I have the honour to be, Your obedient Servant, (Sqd.) W.J. E. Buinie. ALL COMMUNICATIONS TO BE ADDRESSED TO THE CROWN AGENTS FOR THE COLONIES. THE FOLLOWING REFERENCE AND THE DATE OF THIS LETTER BEING QUOTED. Z/E.254/12. COLONIES TELEGRAMS: CROWN LONDON. TELEPHONE: 7730 VICTORIA. 4 MILLBANK. WESTMINSTER, LONDON, S.W.1. 13th June, 1931. I have the honour to acknowledge the receipt of your letter No.82773/31 of the 5th June, wherein we were requested to arrange for Mr. Binnie to visit Hong Kong in the autumn in connection with the Hong Kong water supply scheme. 2. Mr. Binnie has now informed us that he is arranging to leave Marseilles by the s.s. "Naldera", which is due to arrive at Hong Kong on October 9th. We are advising the Colony accordingly. betyOAG @ The Under Secretary of State, Colonial Office. I have the honour to be, Your obedient Servant, Wat wichhar for Crown Agents. Hiller 3/1 Glow 3.6 Mr. Tomlinson. Tomlinso Sir C. Bottomley. Sir J. Shuckburgh. Sir G. Grindle. Permt. US. of S. Parly. U.S. of S. Secretary of State. 82773/3, 1412. Jeine. 1/51 to refer To for": Dr Jov": 24 April Loby w/o encls OAG 100 letter E.254/12 9' potpil, regaining 12 Sting Kong Water Supply Scheme, to encera for your infr cony a doport which alimed to the fort a sting Kong, Fun with Velegram which has to rained answer to 12 supportin made in the third pangash y 12 despalha. 2. The See? o State will ho glass if you with any in th autumn, Binnic to visit the site ? Be Gorge Dem as report upon In Suitability on found ations, on to troms proposed in paremste 8. yaw letter gth 5th April. TELEGRAM from the Gogernor of Hong Kong to the Secretary of State for the Colonies. Dated the 1st Jun,1931. Received at 5.30.a.m. on the 1st June. No.105 CONFIDENTIA. Your despatch of 24th April Saingmun scheme. I concur in visit Confidenti al of Binnie in autt M. Hitung 104 Mr. Calden Mr. Ellis Mr. Tomlinson. 82773/31 H. 24 April. 1981 Sir C. Bottomley. Sir J. Shuckburgh. Sir G. Grindle. Permt. U.S. of S. Parly U.S. of S. Secretary of State. Confidential Governor N.26 in 72854/30) from C.A. 9. April (N.6 with uncrown) frefered Gyor. Penderson Ofto CA 9 Coping v. C.A. DE. (without endroures) повились my Confidential dispatch of 12 21 Janney and comcted compartma on the subjcer of the SHING MUN Valley Waswworks Scheme, I have in. to truonit to you a letter form in C.A. for t Colmice, forecting to report of t Consulting Engineers, muss Sir Alxandw Binnic, Son and Duncan, upon Oferomon schime. It is most ratiofactory The 2. You wil dang wildawg this the (noutring Engineers, white syring his the Schimit is sound mi ill note principle, support enim modifications, ndi perlicates that they make her my unath to malu amy ncommendation more thorough expronte and investigation of the foundation Contitimo The pomposed site for a Gorge Dam have ben mats. Or is winrotia has to work of further exposing the propred site profano, at Could 3. It is obrinoly impraith I scheme whit saliofrio this print, words sternly remmend the acceptanc n mas by R C.A, I supratim made by namely, mas m♪. Dinnie shots visit t site in the autumn with to satisfying himself has to foundations fact suitable for a work o such magniturs. You will note that if this suppotion is adopted, the Comwathing Enginews world not additimat charge for I visit apart from In travlling expeners incurra by mr. Binnie berwen Singapore and It. I [mg, and his hotel and my pocket expenses. дроский скрино shall be glad to be informed at I start to gat Ascrubimo on/ my report and to learn whither H. In proposal this is. Dinic shuts visit and report fate wpm in acceptable ho/h fost o H. Kap. Sir C. Bottomley. Sir J. Shuckburgh. Sir G. Grindle. Permt. U.S. of S. Parly. U.S. of S. Secretary of State. late that you in this visit. 4 Just from your telegram of the 28th f Janay you affrove generally of the construction f the second action of the thingmen scheme, but you will appreciate that in connection with a work of this magnitude I e to any shall be able to come final decision until I have received your considered commendations by desfatile. Mr. Gourley's refert maker it Dear that t - devimble to extend the waterworks undertaking us soon as ponible, but the cost of the extension Felge eat is extimuted to cost $8,000,000, tepliding engineering or supervision, and the question of whether the 4.K. Gost.com afford such a large sum, and if es, low-`'t bald be provided, rate should be carefully considerd by you in rejunction with your finemies, by he necessary partitulars to bring of to date your Sinners. The application for assistance from the slomil develop. Fund should be forible & & the question I would refer to my desputed comfid . lespatele of the 16 "fortober. [14] submitted as 5. Another matter was hich I shall be feed to receive your considered Semployment of contractors regards the metted of arging scheme is and where it is affronds. You will note the sender der Gonday and the C.Argento regarding the terms in which contractors might be employed. Whatever may be decided about intreston, I unsider that the employment of Consulting Engineers is practically evential for work of this magnitude & Isbell be glad to learn if you concur in the come toguntis that subject, y (Signed) PASSFIELD, ALL COMMUNICATIONS TO BE ADDRESSED TO THE CROWN AGENTS FOR THE COLONIES. THE FOLLOWING REFERENCE AND THE DATE OF THIS LETTER BEING QUOTED. E.254/12. TELEGRAMS; CROWN, LONDON. TELEPHONE: 7730 VICTORIA. COLONIES 4, MILLBANK, WESTMINSTER, LONDON, S.W.1. 9th April 1931. on 4285730 I have the honour to refer to your letter No.72852/30 of the 10th October wherein you requested us to arrange for Mr Gourley, a partner in the firm of Sir Alex.Binnie Son & Deacon, to visit Hong Kong and report upon the Shing Mun Water Supply Scheme. 2. Mr Gourley arrived in Hong Kong on the 9th January last and remained until the 31st of that month. During his visit he made a comprehensive investigation of the whole question of water supply, and we now enclose a copy of a report dated 1st April which we have received from Sir.Alex.Binnie Son & Deacon regarding the matter. In their report the Consulting Engineers point out that in only four complete years since 1906 has a full and unrestricted water supply been provided in the Island of Hong Kong. They estimate that the maintainable resources of the Island will meet anticipated requirements until about 1936 whilst those on the mainland will be sufficient until about 1933. It is thought that by 1936 the total resources of the Island capable of economical development will all be utilised and that further supplies must come from the mainland. To avoid restriction of supplies in the event of a sequence of Copy to For Terme (7) The Under Secretary of State, COLONIAL OFFICE. /critically critically dry years, it is necessary to have further sources available in time for the rains of 1935. 4. Mr Gourley investigated closely the scheme outlined in the report by Mr Henderson of the 8th April 1924, and his further report on the 31st March 1930. It will be remembered that the first instalment of the scheme has been carried out and the primary object of Mr Gourley's visit was to determine whether the second instalment of the proposed scheme was the best way of augmenting the existing supply. It is satisfactory to note from paragraph 39 of the Consulting Engineer's report that the scheme in principle is good and that the works so far completed have been well laid out. The principal feature of the second instalment is the construction of a dam in the Shing Mun Gorge. This dam will be of considerable height and in fact higher, we believe, that any dam previously constructed in the British Empire, although several dams of greater height have been built in America. The success of any dam depends primarily upon the foundations which support it, and the exploration of the foundations had not proceeded sufficiently far during Mr Gourley's visit to determine definitely whether the selected site was entirely suitable for the construction of a dam of the height proposed. It is thought however, that the site will be suitable, but a definite decision on this point cannot be reached until the rock has been further exposed. This work is in hand and definite approval of the scheme cannot be given until the trial trenches have been completed. Upon completion of the Shing Mun dam and reservoir, the Consulting /Engineers Engineers estimate that the water available will suffice for estimated requirements until about the year 1945, provided that the estimated annual increments of demand are not exceeded. 5. In paragraph 62 of the report the Consulting Engineers draw attention to the necessity of investigating suitable sources of sand supply. 6. The Consulting Engineers in paragraphs 60 to 65 consider the method which should be adopted for constructing the works, and recommend that the work be carried out without the services of a major contractor. If however the Colonial Government consider it desirable to place the work out to tender the Consulting Engineers think that the Government should specify the plant which should be employed upon the work in order to ensure that the work may be carried out economically. This proposal is a novel one, and would appear to prevent the contractors utilising such plant as they might possess. If the Government purchases the necessary plant, one of the advantages which is normally obtained by construction by contract ceases to operate. 7. The Consulting Engineers estimate that, at current prices, the cost of completing the main and subsidiary dams and works ancillary thereto, including contingencies but not engineering or supervision will amount to $8,000,000. 8. With regard to paragraphs 42 and 43 of the report which deal with the investigation of the site of the Shing Mun Gorge dam, the Consulting Engineers inform us that Mr Binnie is leaving for Singapore in the Autumn and could visit the site in order to inspect the foundations as revealed by the /further 4/2853/30 further exploratory work about the middle of October. The Consulting Engineers would not propose to make any additional charge for this visit beyond the travelling expenses incurred between Singapore and Hong Kong, and hotel and out-of-pocket expenses in Hong Kong. In view of the magnitude of the proposed dam, and the importance of the foundations being suitable, we are strongly of the opinion that Mr. Binnie should be asked to visit the site and satisfy himself that the foundations are in all respects suitable for a dam of the height proposed. With our letter of the 18th September, we enclosed a copy of a letter dated 17th September which we had received from Sir Alex. Binnie Son and Deacon outlining the fees they would propose to charge for acting as Consulting Engineers on two alternative assumptions, depending upon the measure of responsibility they will be called upon to accept and the amount of detailed work they will be expected to carry out. We suggested that a decision on this point could be deferred until Mr. Gourley had discussed the matter with the Colonial Government. We do not know to what extent the Colonial Government wish to rely upon the advice of the Consulting Engineers in the future, but we think that in any case the Consulting Engineers should be entrusted with the design of the dam and should be called upon to accept full responsibility for its stability. 10. The Consulting Engineers draw attention in paragraph 19 of their report to the necessity of modernising the existing distribution system, and in paragraph 20 to the desirability of revising the existing ordinance which governs the waterworks undertaking. I have the honour to be, Your obedient Servant, Dr. Brosheet. FOR CROWN AGENTS. DUPLICATE COPY. The Crown Agents for the Colonies, ↳ Millbank, Westminster, S.W.1. B. 254/12. HONG KONG water. SIR ALEX BINNIE, SON & CHARTERED Civil EngineERS. ARTILLER" HOUSE, ARTILLERY ROW. WESTMINSTER, 5. V. 1. 1st April 1931. By your letter E.254/12 of the 13th October 1930 we were requested to arrange for our partner, Mr. Gourley, to visit the Colony with a view to his making a general inspection and examination of the Shing Mun Scheme, inspection of dam sites, and to report and advise on the general scheme. Mr. Gourley arrived in Hong Kong on January 9th last and left on the 31st. During this time he inspected the whole of the existing sources of supply, and the exten- sions in progress on both the Island and the Mainland: the area of supply was examined, also the Shing Fun Valley and the country adjacent thereto which will serve as the collect- ing ground for catchwater extensions of the Shing Mun Scheme. In addition to his visits of inspection, Mr. Gourley has been furnished by Mr. Hender on and other officers of the Waterworks Department, with all the statistical and other information for which he has asked. We have pleasure in reporting as follows:- ISLAND RESOURCES. There are six impounding reservoirs with a gross capacity of 2,118 million gallons, which are fed by 3,222 acres of direct and indirect catchment. We have made our own estimate of the present main- tainable yield of these sources and, altogether, it amounts to 8.25 million gallons a day 8.25 M.G.D. On the completion of the Aberdeen Works as set out in Sessional Paper 4/1928 Page II, the total storage will be increased to 2,408 million gallons and the catchment area to 4,672 acres with an estimated corresponding maintainable yield of 10 ̊80 M.G.D. On the completion of the remaining works catchwaters -only set out in the above-mentioned Sessional Paper, the total catchment area will become 6,051 acres, and the total maintainable yield of the Island Works will be 1285 M.G.D. We are of opinion that with the completion of the works mentioned in the preceding paragraph, the total resources capable of economical development will have become exhausted, and that further supplies must come from the Mainland. Island Requirements. The difficulty of forecasting the water requirements is not lessened by the knowledge that in only four complete years -1908, 1919, 1920 and 1921 since 1906 has a full and un- restricted supply been given, due to the fact that the con- struction of new works has never kept pace with increasing consumption and at times has been seriously in arrears. From a detailed investigation of the past records it appears that had there been no restrictions during 1930 the consumption of that year would have been 10*80 M.G.D. or 3,940 million gallons per annum. For the next 15 years we consider that a conserv tive estimate of annual increase would be 100 M.G. so that by the end of 1945 the consumption will be 5,440 M.G. or 14.90 M.G.D. It must be borne in mind that steadily, though possibly slowly, the standard of living is rising, and although today the percentage of the population for which water-borne sewage disposal is available is small, this percentage must increase, and the general adoption of this system would add 20 to 30 per cent. to the water consumption. In Paragraph 7 we have given the total available resources of the Island as 12'85 M.G.D., so that in some seven years time it will be necessary to supplement the local resources by Mainland water. Filters. We observed that in the Peak District there were a number of houses within the catchment area which, under . normal conditions and unless completely sewered, would not be considered satisfactory from a Vaterworks Engineer's point of view. As all the water is filtered and chlorinated there would appear to be no reason why further building under suitable restrictive conditions should not be allowed, provided that the present rural character of the district is maintained. At present there are slow sand filters capable of dealing with 6°3 M.G.D., and rapid gravity filters with a capacity of 3'0 M.G.D., and on completion of the Elliot rapid filters the total capacity will be 13'3 M.G.D. Allowing for seasonal fluctuations, the total filtering capacity necessary for the ultimate yield of the Island resources should be 20% in excess of 15'4 M.G.D. We should therefore recommend that approval be given to the proposal for converting the 2 M.G.D. slow sand filter units at Albany into rapid gravity units with a capacity of 4 M.G.D. The estimated value of the land render- ed available for building purposes after the new filters have been placed in commission would be more than the cost of new construction. Services Reservoirs. The total capacity of the various service reservoirs 18 19 85 M.G., which would appear to be reasonable for today's requirements, but further capacity will undoubtedly be required as the demand increases. "A usual provision is two days' storage of the average annual daily supply, but in this case, owing to the skilful way in which the various sources of supply are being interlocked, a somewhat smaller storage is The construction of the Garden Service Reservoir permissible. at an early date would remedy the deficiency and incidentally put the supply via the Harbour Pipe Line on a satisfactory General. The supply of an area having a range of elevation from practically sea level to 1,750 feet above sea level is necessarily difficult, and somewhat high pressures in the lower parts of the various zones are not easy to avoid. Whilst on the basis of the estimated population of 448,000 in 1930 which figure may be liable to relatively large error - the rate, inclusive of municipal services and trade supplies, of 24 gallons per head per day, may not be considered unduly high, we would recommend the introduction of a system of water meter detection in the most populous areas as the means of conserving to the utmost the resources of the Island. We are aware that the metering of individual supplies is increasing, but what we now suggest would detect losses in the distribution system as well as in the house services. As many of the mains in the City are of small diameter and have reached obsolescence, the distribution system must be modernised before an effective scheme of waste detection can be brought into operation. There is one other matter which should be mentioned as a further essential measure to assist in the conservation of water. The Ordinance which governs the activities of the Waterworks Undertaking and which regulates the nature of the Fittings and Plumbing is No. 16 of 1903. An examination of this document shows that it is in many respects quite inapplicable to modern conditions, and we should therefore recommend that a revision of the Ordinance and its regulations be made at an early date, using as a basis the Model Byelaws of the Ministry of Health. MAINLAND RESOURCES. There are two impounding reservoirs on the Kowloon side with a gross capacity of 469 M.G. which are fed by 1,290 acres of direct and indirect catchment. We estimate the maintainable yield of these sources to be 2'7 M.G.D. When the Kowloon Reservoir is completed in a few months' time, the maintainable yield will be increased to 3.0 M.G.D. In addition to these sources there are the waters of the Shing Mun which are brought into the Reception reservoir adjacent to the Kowloon Reservoir. We can accept Mr. Henderson's figure of 3 M.G.D. as the yield of this source with a simple intake. 6.0 M.G.D. The total resources of the Mainland are now Mainland Requirements. Although there were no restrictions from 1906 to 1921 inclusive, any figures based upon the rate of increase of consumption in that period would be entirely insufficient. Having regard to the potentialities for development and the increase of consumption between 1928 and 1930 two years in which there were no restrictions we would take 160 M.G. per annum as a conservative figure of increase for the next fifteen years. The consumption for 1930, including the Water Boat Station, waв 1,654 M.G. or 4'65 M.G.D. By 1936 the requirements will have reached 2,654 M.G. per annum or 7°3 M.G.D., and by 1945 the estimated requirements will be 4,094 M.G. per annum or 11'2 M.G.D. Filters. The slow sand filters are capable of dealing with 2.9 M.G.D., and the rapid gravity filters recently completed, bring the total capacity up to 7'9 M.G.D. or, to cover seasonal fluctuation, to 6'5 M.G.D. as an average annual figure. This capacity gives a small margin over the yield of the existing sources and is equal to the estimated require- ment for 1934. As the Administration Building at the Shek Lai Pui Rapid Filters will serve the second instalment of filter units, we would recommend that the arrangements for the completion of that second instalment of 5 M.G.D. capacity be initiated so as to permit of the filters being available as soon as possible. Service Reservoirs. The total available capacity of the various service reservoirs on the Mainland, including the one now practically complete at Shek Lai Pui, is 15 15 M.G., which will be sufficient to meet the estimated requirements for the next six years. The construction of another service reservoir should be put in hand at about that time, but as the large storage in Shek Lai Pui is somewhat remote from the area of supply, it is desirable that local service reservoirs should be constructed to suit developments. General. The estimated population for 1930 for Kowloon is 178,000, and the corresponding rate per head is 26 gallons per diem. This figure compares with 24 gallons on the Island, and is a measure of the way in which the rate per head must increase as housing conditions improve. NEW WORKS. We have shown that for 1936 the maintainable yield of the Island sources of supply will equal, the estimated requirements, and by the same year the maintainable yield of the Mainland sources will fall short of the estimated require- ments by 13 M.G.D. To avoid restrictions of supply in the event or sequence of critically dry years, it will therefore be necessary to have further sources available in time for the rains of 1935. Shing Mun Scheme. This brings us to the consideration of the scheme outlined in the report by Mr. Henderson of the 8th April 1924 and his further report of the 31st March 1930 which deals more particularly with the works of the second instalment of that The works of the first instalment, as set out in Mr. Henderson's further report have, with the approval of the Secretary of State, been completed with the exception of the Public Gardens Service Reservoir (Hong Kong), though, we might observe in passing, that had we concluded that the Shing Mun Scheme was not the best solution, then a considerable proportion of the works of the first instalment might have been of no After our various inspections of the Valley and the adjacent country we can, however, say that the scheme in principle is good, that all the works which have been completed as the first instalment are necessary and are well laid out, and that, with the modifications to which we will refer later, it forms the most economical means of securing the additional water required to meet, not only the needs of the next fifteen years, but also of a much longer period. This source also has the great advantage, and consequent economy, of giving a large augmentation of gravitational water when fully developed on the lines we would recommend. We examined the site of the Shing Mun Village Dam, and agree with Mr. Henderson that this is not a favourable site. We also inspected the Shing Mun Gorge Dam site, and so far as were able to examine the rock exposures in the gorge itself, in the trial trenches already made, and in others which were made during our visit, our investigation leads us to the conclusion that with careful design and good workmenship, a masonry dan safely to impound water to a level of about 625 feet above datum, could be constructed at this site. In view of the magnitude of the structure, it will be necessary most fully to explore the foundation conditions before our final recommendation can be made, and we gathered that this exploratory work would be promptly put in hand. Apart from the question of foundation con- ditions, full particulars of rock levels throughout the area of the base of the dam will be necessary before the drawings, specification and bill of quantities can be prepared. Although the urgency of bringing in additional water is great, we feel that no effort should be spared thoroughly and completely to investigate the conditions at the site of the Shing Mun Gorge Dam: the more thoroughly this is done the less the risk of unforeseen additions either in design or estimates. As Mr. Henderson rightly observes, the Shing Mun Valley should be developed to the utmost. To store water to a depth of 175 feet, and a top water level of 600 above datum would give a storage of 2,000 million gallons: the addition of 25 feet would increase the capacity by about 1,000 million gallons. The dam in either case, whilst not being of record height and cross section, would nevertheless be such as to put the structure into the class of high dams of which relatively few have been constructed, and in which the problens of design are of a much more onerous and responsible nature than those involved in ordinary dass, of which those already constructed in the Colony are typical. In addition to the main dam a subsidiary dam would be required to close the gap at Pineapple Pass. The direct catchment area to the reservoir would be 2,900 acres, and we estimate the maintainable yield of the reservoir to be 9-25 M.G.D., so that upon its completion an additional 6*25 M.G.D. will become available. Should a period of dry weather set in before the dam is completed there would be no difficulty in impounding sufficient water to make good the deficiencies in the present sources of supply. The total estimated requirements for Hong Kong and Kowloon in 1945 amount to 26°10 M.G.D., and on the completion of the Shing Mun Reservoir the resources will be 25'10, so that no further extensions should be required until about that date if the assumed annual increments of demand are not exceeded. It is for the future extensions of this scheme thắt we have considered it desirɛble to modify Mr. Henderson' proposals. In doing so, we had before us the latest informa- tion with regard to Gin Drinkers Bay which was not then avail- able to him, and were impressed with the necessity for the utmost development of the high level sources. The total direct and indirect catchment area of the gravitation portion of Mr. Henderson's scheme amounts to some 6,150 acres: the scheme we recommend has a corresponding figure of 9,000 acres with a possibility of bringing in a further 1,300 acres. As the necessity arises, a catchwater running along the southerly flank of the Tai Mo Shan Range at a level of about 700 above datum, could be constructed to deliver water into the Shing Mun Reservoir at Pineapple Pass. This catchwater would drain some 2,800 acres and add about 4 M.G.D. to the yield of the scheme. A subsequent development would be to lead into the reservoir by catchwater the run-off from some 60 acres lying above the 700 contour and to the east of the reservoir, with the consequent addition of about 1 M.G.D. The penultimate development would be to run a catchwater along the northern flank of the Tai No Shan and also the northern and eastern slopes of Grassy and Needle Hills, which form the north-easterly boundary of the reservoir basin, at a level of 1,000, and to bring this into the reservoir basin by a tunnel under Lead Mine Pass at a level of 650 feet. This catchwater would drain about 2,700 acres and add about 31 M.G.D. to the yield of the reservoir.

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