transmit a copy of his Report. 5. You will perceive that Commander Reed recommends, for reasons which seem conclusive to me, the erection of two first class Lights, one on Gap Rock in the S.W. from Trong Kong and the other on the Waglan Island S.E., also the creation of a Light visible 15 Miles on the small Island of Cow-e-chow, nearly due W. He likewise suggests the erection of a Beacon in the approach to the Lye Moon Pass from the S., and one on the point between the Syrang Passes, which latter are within the jurisdiction of this Government.
7. On reviewing the recommendations of Commander Reed, Your Excellency will find that all three Light houses are proposed to be created on points entirely outside the jurisdiction of this Colony, and that I have no authority, whatever, to incur such expenditure even if it could reasonably be expected to be defrayed by this Colony.
8. I have, however, called for an Estimate from the Surveyor General of the Cost of erecting the two Beacons above named, and shall have great pleasure in inviting the Legislative Council to concur in the expense necessary to erect them.
9. I would not, however, be doing frankly, if I did not at once state