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better class Chinese, who have as Europeans in the Colony would prove quite capable of giving the necessary protection and holding an in-disposed section of the Chinese population in check.

(6) The building of the new Government Magazines on Green Island is about to be commenced and is recognised as an urgent work, which will be pushed forward with all possible despatch.

(7) Under the Peace Preservation Ordinance (No 15 of 1886) the Governor in Council has power to deport from the Colony any person not a natural-born subject of Her Majesty, whether such person has been naturalised or not, whose banishment appears to the Governor in Council to be necessary for the public safety. This provision gives ample power to deal with individual aliens, even in large numbers, whose presence in the Colony might be considered, after due enquiry, to be inimical to the public safety. Moreover, all the subjects of a Foreign Power with whom England might be at war can be required to leave the Colony in accordance with International Law. No additional power seems necessary to deal with deportation referred to in the first part of paragraph 11 of Major-General Hatton's letter.

With regard to the wholesale deportation of the Chinese, viewed with a view to the reduction of the population requiring to be fed, suggested in the last part of the same paragraph, I submit that it would be a dereliction of our national duty to deport any Chinese possessed of property here, or who had careful avocations remaining for them to follow in time of war. Of course, there are a surplus population of Chinese with no property in the Colony, no employment, and no means of subsistence. I am of opinion that they might properly be deported in the public interest and be landed on behalf of China, should the necessity arise. On this point also, one Unofficial Member of Council agrees with the deputation that they might properly be resorted to in the public interest in respect of the class of persons I have indicated.

I may mention that there are a large number of coolies employed on various public and private building operations and other undertakings in the Colony, large numbers of whom would in all probability be thrown out of work in time of war.

Government House.

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I submit that it would be preferable to deal with this matter constitutionally by means of a special Ordinance rather than resort to the extreme measure of proclaiming Martial Law to carry out the object in view, and I inclose a draft of Ordinance as I think would meet the case.

(8) In paragraph 12, Major-General Hatton draws attention to a very important point, which has apparently previously escaped the notice it deserved.

The defence of this additional position entails an employment of additional troops, which cannot, as I read the scheme, possibly be spared. It is evident, therefore, that on this ground alone, an addition to the Garrison is desirable.

I have no claim to be able to give anything more than the opinion of an amateur on the question of strength of the Garrison. But I have some knowledge of the ground, which more or less gives strength to my opinion, and I am strongly of the opinion that the Garrison must be occupied in defence of the Colony, and that it is at present inadequate for the safety of the Colony. An addition of 3000 Infantry and Garrison Artillery is required.

Paragraphs 5-8 of Chapter 1 of the scheme describe the line of defence to be held, a length of 13 miles, I believe, and the paragraphs referred to vindicate its difficulties. I submit that a Garrison of some 4000 men is not adequate for the task.

(9) In view of the distances to be covered and the difficult nature of the ground, I concur in Major-General Hatton's recommendation that 150 mules, exclusive of coolies, are necessary for transport purposes.

(10) I come now to Major-General Hatton's recommendation that, in order to place the conduct of the defences on land in the hands of the General Officer Commanding, he should, in the event of hostilities, be constituted the supreme authority in the Colony.

The relations between Major-General Hatton and myself have, as he himself states, been so cordial, that I know...

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