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had been obtained by Mr. Parkes under my authority. By Lord Elgin's authority the peninsula together with Stove Cutters Island was placed under the jurisdiction of the Colony of Hong Kong from the 19th January 1861.

In obedience to the instructions conveyed in your letter of the 10th December 1860 a Mixed Commission will be shortly assembled to draw up the report you call for - Lieut. Robt. Mann R.E. will be the Military Member of the commission.

I cannot however avoid here stating my opinion that the whole of the territory recently ceded should be detained in the hands of the Crown and that no portion should be sold to private individuals, but leases granted instead, that the ground might hereafter be reclaimed if thought necessary.

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I am induced to form this opinion for several reasons.

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