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If the decision of the council of the Tung or of the General Council is not regarded as satisfactory, an appeal lies to the magistrate of the district.

THE PROPOSED FUTURE GOVERNMENT OF THE NEWLY LEASED TERRITORY.

I am of opinion that in the future government of the newly leased area, the organization at present in existence should be as far as possible utilised.

Public Works.

The chief work of this Department will be to erect buildings and to construct roads and piers. A staff consisting of one assistant engineer, a draughtsman, two clerks, and a few overscers would suffice at first. The officers of this Department should, I think, be under the supervision of the Director of Public Works of Hongkong, so that the new territory may have the benefit of the experience and advice of that officer. I may mention that the present Director of Public Works, Mr. ORMSBY, is of opinion that the supervision of the public works in the new territory can, without difficulty, be arranged from Hongkong.

Police.

A European should be appointed as head of the police, and should have under him a Chief Inspector, 4 European Sergeants, and an Indian Sergeant, to act as Jemadar of the Indian Police. A force of at least 30 Chinese and 20 Indians should be enrolled and stationed at headquarters or other convenient places, from whence they could patrol the territory in different directions, in order to maintain peace and good order, and to protect the lives and property of the inhabitants. This force should be properly drilled and partially mounted. A detective force of 15 men will also be required. The existing system of village constables should be maintained, the Tipò, or head constable, being held responsible to the Watch Committee of the village for the good order of the village. The number of these village constables in the Tung Lo, or Eastern section, must be over 1,000. Their pay, which is at present defrayed by the villages, is very small, and will, no doubt, have to be increased in order to secure efficiency. It is hoped that this large force may be gradually improved and converted into a well disciplined force of military police. To begin with, however, it will be necessary to take them as they are, and make the best possible use of their services.

The village council should, for purposes of police, act as a watch committee, and control the village constables, the Tipò being in the first instance responsible to them.

With regard to the policing of the islands, an Indian and 3 native Chinese should be stationed on the island of Ch'eung Chau, and the same number of men at Tai‘O, in the island of Lantao. These police should be under the inmediate supervision of a European Inspector, with headquarters at Ch'eung Chau, who should have at his disposal a launch armed with a machine gun, and a crew, who should be properly drilled. With this launch he would be able to visit regularly all the islands in the new territory. Lamma Island, which is immediately adjacent to Hongkong, might be policed from Aberdeen. The Putoi Group might also be placed under Hongkong so far as the policing of them is concerned.

Launches.

In addition to the launch for visiting the islands, another launch will be required for the east of the new territory, and a pinnace for Deep Bay and its neighbourhood in the west. Each of these vessels should be armed with a quick- firing gun, and commanded by a European, who should have under him a crew trained to the use of arms.

Judicial.

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I recommend that the village tribunals be retained, and that they be allowed to exercise their present powers under proper supervision. A precedent for this exists in Ceylon, where an ordinance entitled the "Village Communities Ordinance (No. 24 of 1889) is in force, and which, I think, might with slight modifications be adopted for the village communities in the new territory. In this opinion Mr. BREWIN, the Acting Registrar General of Hongkong, the Hou. Ho KAI, and the H n. WAI YUK, the Chinese members of the Legislative Council of Hongkong, whom I consulted, concur.

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