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Your letter of the 17th inst. has just arrived. We have not been to Castle Peak and, as we are informed by the villager referred to above, troops went there to-day, it would seem better for us to wait until we knew exactly how matters stand. The villages we have passed through are sparsely inhabited at present, which shows that many of the villagers have not returned from the fight. Three cannons and three cannonades have just been found in a pond here. They were discovered accidentally by Lieutenant BARRETT whilst bathing. Mr. MAY and Captain BERGER report that they saw two British flags (locally made) hoisted in a Chinese village to-day.

J. H. STEWART LOCKHART,

(Colonial Secretary's Minute of the 20th April, 1899.)

YOUR EXCELLENCY,

P'ING SHAN, 20th April, 1899, 5.30 a.m.

I have just received your despatch of the 17th instant, with its two enclosures. We have been careful to search for arms and have found some. Most of the villagers, however, have not yet returned to their villages, but are still in the hills, no doubt carrying arms. Mr. MAY leaves this morning at 6 a.m. and will reach Tái po Hi about 11 am. He will then proceed to Hongkong and give you full details of our operations. I am instructing him to take back with him Dr. THOMSON and Mr. MESSER, for whose services there is no need at present. Mr. MESSER might be placed in the Land Office to learn the routine, I think the Police might also be withdrawn for the present. Mr. MAY will explain his views to you orally. Colonel THE O'GORMAN and I work together splendidly, so I trust we may be allowed to continue to co-operate. Though active resistance on the part of the Chinese may cease, it will be some little time before the territory can be settled. In view of the part taken by the villages of Un Long and Ping Shán (where I now am), I have told the elders, Police Stations must be built on what- ever site is considered most suitable. I mention this, as you refer to this point in your despatch of the 16th instant. Mr. Max hopes to be able to communicate

MAX with us to-morrow and I shall be glad to know whether Your Excellency has any further news or instructions. We are in very good quarters here: the officers are occupying a private house and the men two ancestral temples. good health, though our food supply has not been regular nor plentiful. We have had but very little, but are all the better perhaps for that. I have had no kit but that in which I stood until to-day. There is no interpreter with the troops, so my knowledge of the language and Ts'or's presence have been of assist-

The latter has been most useful.

ance.

We are all in

J. H. STEWART LOCKHART.

(Governor to Colonial Secretary.)

HONGKONG, 19th April, 1899.

HONOURABLE COLONIAL SECRETARY,

General GASCOIGNE has just returned having landed at Deep Bay at daybreak, and marched through to Castle Peak Bay. He saw no person, so the people at Castle Peak Bay must have retired. I agree with him that now that opposition has been broken up 100 men are sufficient to leave in support of the civil power. Mr. MAY had better get the Force necessary for the New Territory together and place the men not required at Tái pó Hü under canvas at the point near Kam T'in where he proposes to build the station. Having regard to the attitude of Kam T'in I think it will be well to build the station in the position most suitable for secur- ing the control of that and the other Valley.

The police patrol duty should be commenced at once. The people will soon get accustomed to seeing them.

HENRY A. BLAKE.

(Colonial Secretary's Second Minute of the 20th April, 1899.)

YOUR EXCELLENCY,

PING SHAN, 20th April, 1899.

We have remained here all day. There has been no sign of resistance. On the contrary the villagers are returning to their villages. There has been heavy

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