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prepared. The only point in this matter left uncertain is as to whether the wages of the staff and the cost of the hire of launches is to be paid by the War Department or the Colony. Until this point is settled the expenses will be paid by the Chief Paymaster of this command.

2. With regard to the course to be followed by sailing-vessels, the Local Committee would point out that only about 100 sailing-ships come into the port of Hong Kong in a year, and these are nearly all towed by launches through the Sulphur Channel. The Harbour-master is prepared to stop any ships coming in under sail in sufficient time.

3. The Local Committee agree to the proposed alteration in the wording of the first paragraph of the Appendix to their Report of April 1894. The word "directions" was inadvertently made use of.

4. On further consideration of the matter, the Local Committee consider that it would be undesirable to permit "junks and other sailing craft of native build" to pass through the Lyemun defences at night and anchor in Aldrich Bay, and that they should therefore be made to anchor in Sywan Bay; because even now, when submarine mining practices are being carried out, it is most difficult to prevent the local Chinese fishermen from cutting and stealing cables and pilfering chains in a way that is not experienced in any other part of the world;

and the Local Committee believe that, were the junks admitted to Aldrich Bay by night in time of war, men hired by the enemy might do fatal damage to the mine-field. If, owing to strong north-east winds, Sywan Bay should be temporarily an insecure anchorage, native vessels can bring up in Junk Bay until the weather moderates. The Committee therefore recommend that, in paragraph 2 of the "Revised Rules for the Regulation of Sea Traffic," the words "Sywan Bay" be substituted for " Aldrich Bay."

Mine-fields.

5. The Local Committee note that the Quarry Bay mine-field may be dispensed with. It will therefore not be laid out.

6. The gap between Nos. 2 and 3 mine-fields has been closed long since, additional mines having been provided for the purpose from the spare mines in store.

7. The Local Committee point out that the Friendly Channel through the mine-fields was originally fixed so as to coincide practically with the Fairway, but since then the Fairway has been moved further from the shore, and if the Friendly Channel were now shifted further from the Hong Kong shore, so as to coincide with the present Fairway, the result would be that the mines would be outside the range of the observing instrument. This having been represented, the Harbour-master is about to take steps to arrange the Fairway so as to come well within the range of the observing instrument, and practically to coincide with the present Friendly Channel.

8. The Local Committee note that the depth of all mines can remain unaltered.

9. The Local Committee, having carefully considered the proposed change in the position of No. 1 mine-field, are strongly of opinion that it is undesirable to make any change, for the following reasons:-

(i.) The Joint Naval and Military Committee on Defence consider the Lyemun mine-field is necessary, and in this the Local Committee strongly concur. The principle which recognizes the invasion of territorial waters in the case of the Eastern Entrance may therefore be applied to the Western Entrance.

(i.) The enemy's ships would have the whole range of water north of Stonecutter's Island-in fact, the mining defence would be much too far retired.

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