remove any objection to the construction of such houses, and I have also told them that the Government does not intend to take any steps to prevent them.

Such an attempt would, in the opinion of the Acting Attorney General, most probably result in failure by Government to sustain its pretensions.

I have also promised to ask that I may receive an early reply by telegraph to this despatch, informing me whether the proposed new limits are approved.

6. Enclosure 2. Draft Bill

As the new limits will, if approved, be no more binding on the public than the existing ones, unless sanctioned by the Legislature, I have the honour to forward, for your consideration and approval, a Draft Ordinance, the object of which is to give the Government the power to prohibit the construction of Chinese Houses in certain parts of the City. Now that the public are likely to be aware of the fact that the existing

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