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6. I have seen one herd of cattle grazing near Saikung and it appears to me that with the growing of succulent grasses, the hills in the New Territory are capable of supporting a sufficient number of cattle to render Hongkong independent of the present sources of supply on the West and North Rivers.

This is a question that will be taken up on the return of the Veterinary Surgeon and the Superintendent of the Botanic and Afforestation Departments.

7. It is remarkable that the New Territory north of the Kowloon Hills has been quite free from plague although the town of Unlong is apparently everything that a sanitarian would object to, while in the fishing village of Cheung Chau, an island six miles from Hongkong, a single street, kept particularly clean under the supervision of the European Police Sergeant stationed there, and open to every sea breeze, there have been 40 cases this year in a population of about 1,800.

8. A licence has just been issued to a person in Unlong for a powder manufactory, for the making of fireworks—a very large industry in China. I am informed that in the neighbourhood of Kowloon several ventures of various kinds will be started as soon as the land claims have been decided so that capitalists can obtain a title.

9. On the whole I am satisfied with the progress made in the New Territory, where everything is being done without friction and with apparently the full concurrence of the people.

I have the honour to be,

Sir,

Your most obedient, humble Servant,

Henry R. Maye

Governor, &c.

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