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of 1914,the Special Police Reserve. In addition I have arranged for route marches through the streets of the

Colony by the Army, the Navy and the Volunteers in order

to increase the confidence of the people in the power of

this Government to maintain law and order.

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5.

A fresh instance of the labour tyranny in Canton

and its use by the authorities for the expulsion of the foreigner is afforded by the closure of the American "John G. Kerr Hospital for the Insane" at that place. An account of this incident and the moves leading up to it

Enclo No. 9s given in the enclosed extract from one of the local

English newspapers. Its closure is a great inconvenience

to this Colony which, as the clearing-house for South China, has from time to time considerable numbers of Chinese lunatics on its hands. For some years past this Government has had a working arrangement with the Asylum by which the latter received from Hong Kong such Chinese lunatics as were not British subjects in return for sub-

annual sidies and, more recently, for a per capita/grant. These arrangements were in the best interests of the patients themselves, who stood a better chance in Canton of being claimed by their own relatives. At the moment of writing it is not know what arrangements the Canton Authorities have made for the care of the inmates of the Asylum, but I have informed the doctor of the Asylum that I am willing to continue the grant for one year and to allow it to be paid to the Department of Public Health, or whatever body has assumed control, provided he is satisfied that it is being properly administered for the benefit of the patients.

6.

I also enclose:-

Enclo. No. 10. (a) A further account of the Foochow incident. You

will observe that this disgraceful manifesto was issued

* Not wi ed.

by

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