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Over 97 per cent. of the emigrants proceed to the Straits Settlements. The present state of the law relating to Third Class adult male Chinese passengers is held by many parties concerned to be susceptible of amendment. Considering the volume of the emigration and the benefits that occur to the Straits Settlements and to the Canton Province one recalls how it has been said that “It is the nature of all greatness not to be exact; and great "trade will always be attended with considerable abuses. The contraband will always keep (4 pace in some measure with the fair trade. It should stand as a fundamental maxim, that no vulgar precaution ought to be employed in the cure of evils which are closely connected "with the cause of our prosperity." On the other hand the importance of maintaining Hongkong in good report among the Chinese must not be under-rated. Chinese public opinion would approve almost any precaution taken to prevent kidnapping, and I am con- stantly being urged to recommend more stringent regulations.
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Whatever the labourers themselves may think about it there is no doubt that audible public opinion in China regards indentured labour as very close to slavery, and has not for- gotten the horrors of the coolie trade to Peru.
The time spent in examination of emigrants was about 103 hours.
The bye-laws relating to Emigration Houses were revised during the year (see Govern- ment Notifications Nos. 341 and 441 of 1905). During the year 52 hotel-licences and 24 licences for emigration houses for males were issued. At the end of the year there were 49 hotels and 18 emigration houses licensed, as against 48 hotels and 14 emigration houses at the close of 1904. The 49 hotels may legally accommodate 3,385 persons and they employ 770 servants. The 18 emigration houses may legally accommodate 322 persons, but as they employ 72 servants the number of emigrants who can be accommodated at one time is only 250. But this is an improvement on 1904, when there was accommodation for not more than 175 emigrants.
4. Regulation of Chinese.
Ordinance No. 3 of 1888.
(i.) - Registration of Householders.
(See Tables IV a and b.)
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The number of certificates issued and the number of changes of tenancy reported remain about the same. It has been suggested to me from more than one quarter that registration should be extended to Yaumati and Hunghom.
(ii)-District Watchmen.
(See Tables V a and b*)
The new Watchinen's Quarters in Saiyingpun were completed at a cost of $5,360 and were occupied on the 1st August. The new quarters in Nullah Lane were occupied on the same date. Their total cost was $4,500. A contract for an addition to the Central District Watchmen's House at Taipingshan at a cost of $3,750 was entered into during the year and the work was to be completed by the close of the Chinese Year.
The balance to the credit of the Fund on the 31st December was $9,452, as against $15,938 for the preceding year. The decrease is accounted for by the sum spent on build- ing, Contributions shew an increase of $83; expenditure au increase of $9,890.
The number of the Force remains the same, as does the rate of pay. I am pleased to be able to report that dismissals are fewer in number by two and resignations by eight during the year. Two hundred and four (204) convictions were obtained before the Police Magistrate through the instrumentality of the District Watchmen. One hundred and thirteen applications for the post of District Watchman were received.
The District Watchmen 'Committee met ten times during the year. In November instructions were issued by His Excellency the Governor regarding the constitution and