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cannot be regarded as places from which an attempt might

be made to take the defences of Hong Kong at a disadvantage.

4.-

Such restrictions to the free movements of vessels of

friendly powers would be of a very grave character, and

their Lordships are not aware of any regulations of

foreign countries except Morocco, and, in a modified form,

Japan, which prohibit men-of-war from anchoring without

permission elsewhere than in the recognised anchorages

laid apart for them. Their Lordships therefore cannot

but feel that, if the greatest Naval Power in the world

initiates restrictions of this nature, other powers will

be only too ready to follow her lead, the result being

that the freedom of His Majesty's Ships all over the world

will be hampered to the most serious extent.

5.-

For the reasons above stated I am to suggest, for

the consideration of Mr Lyttelton, that the restrictions

imposed by the 3rd and 4th paragraphs of the Hong Kong Colonial Order of the 26th June last should be removed, and the Order modified accordingly.

6.-

It would appear that the Order in question was issued subsequently to a representation made to the Governor

by the Commodore at that Port that the German Gunboat "Luchs" had visited Mirs Bay without permission: and it is regretted that a report of this incident was communicated to your Department without some expression of their Lordships' disagreement with the opinion on the subject expressed by Commodore Robinson.

I am,

Sir,

Your obedient Servant,

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