Enclosure No. 2 to Despatch No.

265 of the C.O. 29944 427

Both, June, 1903,

In accordance with the instructions of His Excellency the Officer Administering the Government, a meeting took place in the Council Chamber this day to discuss the question of undertaking certain operations with a view to improving the harbour of Hongkong. The following were present:

1. His Excellency the Officer Administering the Government, Sir William J. Gascoigne, K.C.M.G.

2. His Excellency Vice-Admiral Sir Cyprian Bridge, K.C.B., Commander-in-Chief.

3. The Honourable J. H. Stewart Lockhart, C.M.G., Colonial Secretary.

4. The Honourable R. Murray Rumsey, R.N., Harbour Master.

5. The Honourable Chatham, Director of Public Works.

6. Mr. R. F. Johnston, Acting Assistant Colonial Secretary.

7. Lieutenant James, R.N.

The proposals contained in the Vice-Admiral's letters No. 4818 of August, No. 557 of the 29th October, No. 830 of the 26th December, 1901, and other letters and minutes, were considered.

It was urged on the side of the Naval Authorities that it was rapidly becoming a necessity to remove certain shoals from the harbour and to undertake dredging operations on a large scale, not only for the benefit and safety of His Majesty's Ships but also for the convenience and security of the Merchant Shipping frequenting this harbour. The Vice-Admiral pointed out that certain new docks now being constructed in the harbour for Merchant Ships were much deeper than those formerly built, and that shipping firms recognised the tendency of Merchant Ships to increase in draught. He therefore urged that it was in the interests both of His Majesty's Navy and of Merchant Shipping that portions of the harbour should be deepened, or at least as a preliminary measure that the shoals south of the Coast Rocks and other places should be removed by dredging; and that none of the cost of such operations should fall upon the Imperial Government or the Admiralty.

It was urged on the other hand on behalf of the Colonial Government that while the harbour would undoubtedly require to be dredged in the not distant future, it was not at present an urgent necessity so far as Merchant Ships were concerned; that the Dock Companies

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