PROPOSED NEW ROADS.

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In order to facilitate the development of the country, and to render its admi- nistration easier, it is most important that proper roads should be constructed. On this point I have consulted Mr. ORMSBY, whose recommendations, in which I concur. are embodied in a memorandum (see Appendix 4), with which he kindly furnished ine. The roads recommended by Mr. ORMSBY are marked on Map II*.

TELEGRAPHS.

There is a telegraph line, marked on Map II*, which runs from Hongkong through the newly-leased territory to Canton. The line itself, posts, and wires, up to the present boundary between Chinese and British Kowloon, are owned and maintained by the Eastern Extension Telegraph Company. Beyond the British boundary the line is the property of the Chinese Imperial Government, which has a telegraph office in Hongkong. It would, I presume, be possible, to make arrange- ments for using the existing line; but on many grounds it appears to be preferable to construct a separate and independent line. If it be ultimately decided to establish the headquarters of the Government at Taipò Hü, which seems to be the most central position, it will be sufficient, at any rate to begin with, to construct a line from Hongkong via Kowloon, and over the pass in the hills behind the latter place, directly to Taipò Hü-a distance of say 10 or 12 miles.

It is estimated that the cost of such a line would amount to $5,000 or $6,000.

RAILWAY.

The construction of a railway between Canton and Kowloon has been mooted for a long time, and some years ago a survey of the country, through which a line might pass, was made on behalf of a syndicate of Chinese. But the scheme appears to have been abandoned, and nothing more was heard of it until quite recently, when it again came under consideration, and is, I understand, at present being discussed.

If a railway be constructed between Canton and Kowloon, there can be no doubt that such a line would greatly aid the development of the new territory, through a portion of which it would pass, and would be of great commercial and political importance, as it would unite more closely with Hongkong the great com- mercial city of Southern China and the many towns lying between the city of Canton and that colony.

In the event of a main line being constructed to Canton, it would, no doubt, be advisable to establish branch lines, connecting with the main line, in that portion of the new territory through which the main line will not pass.

It has also been suggested that, even if the Canton-Kowloon line be not established at once, light railways should be constructed in the new area. They would, no doubt, help to develop it and increase its population by attracting people to it, but roads seem to be the first requisite, and should be attended to as soon as possible.

PRESENT GOVERNMENT OF THE SAN ON DISTRICT.

Civil Officers.

The district of San On, within which the area about to be leased is situated, is included in the jurisdiction of the Viceroy of the two Kwong Provinces, who lives at Canton.

The chief civil officer of the district is the magistrate, who resides at Namt'au, and who is responsible to the Viceroy for the good government of the whole district, and whose duties are both judicial and executive.

Under the magistrate are an assistant magistrate and two deputy magistrates. The assistant magistrate resides at Taip'ang. One deputy magistrate is stationed at Fukwing, north-west of Namt'au, the other within the city of Kowloon.

The assistant and deputy magistrates have power to make arrests and conduct preliminary inquiries, but should refer most cases to the magistrates for final decision.

* Not printed.

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