75
to the Eastward of Victoria, has become within the past year a Chinese boat building and docking station of some considerable importance. It contains at present upwards of 8,000 inhabitants, of whom some few only are by permission under Squatter licenses, the great majority having settled themselves and built houses without any authority from the Government.
3.
As there was reason to believe that some of the old settlers were endeavouring to exercise the right of proprietorship and extort rent from the new comers, I directed the land to be marked out into building lots, and those occupied by the trespassers to be sold in the usual manner by public auction, giving to the occupants permission to remove their huts in the event of their not becoming the purchasers. This was carried out accordingly, and produced the result reported above.
4. I did not think, however, that it would be either fair or politic to adopt the same course with those who had been recognized by the Government as annual tenants, some of whom indeed had been located there even prior to our occupation of the Island and had built houses of great