Go in the tower after him but don't move away from the door, listen in to his conversation then leave (activate door ) without moving your character. He shouldn't discover you unless you move. So you could try just listening and leaving him alive to see if that works as suggested above. Once I did leave him alive and it worked out but you have to be able to defuse the bomb with explosives/repair skill if you don't loot his body if I recall correctly.
Also:
Once you are done listening to the covert conversation, leave the tower and
immediately head for the monorail as fast as you can go
without talking to Colonel Hsu. After the bomb is defused you can then turn Curtis in to the Colonel to complete the quest.
This is of vital importance due to a glitch in the quest script: if you rat out Curtis prior to defusing the bomb you
cannot save the monorail no matter what you do. Thus the order of operations as outlined above, as that is the
only way the monorail can be saved.