Further drilling to determine foundation conditions at the proposed Waymouth Street Telephone Exchange was requested in a letter from the Director of Works dated 5th February. It was requested that this work be carried out in liaison with Soilmech Pty Ltd, who were engaged by the Department of Works as Engineering Soils Consultants to carry out laboratory testing on the samples obtained during drilling at the site. Results of previous preliminary geological investigations involving 2 drill holes (CH 1 and 2) are contained in Progress Report No. 1. The proposed building is to occupy an area of 212 feet by 78 feet and will be of fifteen storeys, including two storeys below ground level to a depth of 32 feet. Four cable tool drill holes (CH 3 to 6) were drilled during the present investigation. These were tube sampled throughout with sealed tube samples taken every 5 feet. Each hole was taken to the limit of cable tool drilling, usually at about 50 feet below ground surface, and then estimated by diamond drilling. This report discusses the results of the drilling in the two stages of investigation, and also from excavations elsewhere in the city area.