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PUBLIC RECORD OFFICE

Reference :-

TTIC.O. 882

5 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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3. You have already become acquainted with the general aspects of the questions involved in the transfer of this territory, and it is unnecessary, therefore, that I should here dwell upon them at any length. You will have gathered from the correspondence enclosed in my previous despatch, that there are three points which Her Majesty's Government have regarded as of special importance in the preliminary stages of the negotiations. They relate to Kowloon City, the northern boundary of the leased terri- tory, and the collection of the Chinese duties on opium. ›

4. The questions of the civil administration of Kowloon City and of the extension of the northern frontier so as to include the town of Sham Chun will require no imme diate action on your part pending negotiations with the Chinese Government, and the action already taken by Her Majesty's Government is sufficiently explained in the correspondence; but, while such negotiations are pending, no time should be lost in giving attention to the third question, that of the prevention of smuggling into China and the collection of the Chinese Customs duties on opium. You will see that Her Majesty's Government have come to the conclusion, which, if I understand right, is your own conclusion also, that the only satisfactory solution of this question will be the estab- lishment of some system whereby the Chinese Customs duties on opium imported into China from Hong Kong, including the newly added territory, shall be actually collected by the Government of Hong Kong. The details of such an arrangement must be settled on the spot, and it will be one of your earliest duties to consider the best means for carrying the decision into effect.

5. I do not attempt, at present, to give you any definite instructions on this subject; I should only fetter you if I did so. I prefer to leave it to you to devise a scheme upon the lines indicated, to be submitted to me for approval. You will receive valuable assistance in this from Mr. Lockhart, a copy of whose report on his recent visit to the new territory is enclosed herewith, and from other members of the Executive and Legislative Councils, and you will doubtless also consult with the leading merchants, and possibly with representative members of the Chinese community.

6. If the Chinese Government accept the offer which has been made to them, I do not anticipate that you will experience any great difficulty in organising a suitable machinery for dealing with the question, and I am confident that you will shortly be in a position to submit to me detailed proposals.

7. I now come to other questions, which are not treated of in the correspondence with the Foreign Office, inasmuch as they are matters not of foreign policy, but of internal administration, but which are nevertheless of great importance.

8. A considerable portion of Mr. Lockhart's most interesting and valuable report is devoted to the question of the future administration of the new territory, and this difficult question has for some weeks past occupied my attention. Here, again, I do not propose to enter much into detail, but I should wish you to understand that in my opinion the new territory should from the outset be regarded as an integral part of the Colony of Hong Kong, and, as such, should be brought under the general administration of the Colony at as early a date as possible. It appears to me that future difficulties will be obviated by taking this course, and that it will be found to be at once more effec- tive and more economical than treating the leased district as separate from the old Colony. While, therefore, I thoroughly appreciate the value of Mr. Lockhart's report, and am prepared to concur in many of his recommendations, I am not prepared to accept, as a general principle, his conclusions that it will be expedient to place the new territory under a new and separate administration, corresponding, to a certain extent, to that of a Protectorate. It has, therefore, become necessary to consider whether and in what manner the existing laws of Hong Kong may be adapted to the circumstances of the new territory, and this question, as I need hardly observe, presents many features of great difficulty. On the principle that the new territory shall be taken to be and, so far as possible, be treated as an integral part of the Colony, it is desirable that as many of the existing laws of Hong Kong as are applicable to its circumstances should be at once applied, the administration of the laws being carried out with tact, discretion, and sympathy with native custom and prejudice; but there are some laws which are in- applicable, and they require some special notice.

9. I have taken advantage of the presence in this country of Mr. Goodman, Attorney-General of Hong Kong, and he has drawn up a memorandum‡ on the subject, together with a draft Ordinance, copies of which are enclosed. This memorandum has

• No. 55.

↑ No. 38.

‡ No. 51.

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been of great use to me in considering the question, and the conclusions at which I have arrived as regards the various Ordinances therein referred to are as follows :----

Ordinance 3 of 1844. Land, &c.; registration of deeds, &c., relating to real property. 10. I concur in Mr. Goodman's opinion that for the reasons given by him this Ordinance need not be excluded. The land question, however, is one which must be dealt with promptly, especially if, as you have stated in your telegram of the 24th of December, land is being bought up by Chinese in anticipation, and one of the first steps to be taken must be the appointment of a Land Commissioner, with a staff of native surveyors. To this subject I refer in a later paragraph of this despatch.

Ordinance 3 of 1897. Probate, &c.,

11. On the whole I am of opinion that this Ordinance should be excluded for the present, and therefore be added to the Schedule to the draft Ordinance.

Ordinance 18 of 1898. Registration of births and deaths.

12. I concur in Mr. Goodman's opinion that this Ordinance should for the present

be excluded. Registration of births and deaths should, however, be carried out as soon

as possible, and might be entrusted to the Village Councils and Elders, working under

the supervision of an Assistant Registrar-General or other European officer.

Ordinance 14 of 1875. Marriage registrations.

13. I agree with Mr. Goodman that this Ordinance need not be excluded. Ordinance 16 of 1886. Stamps.

14.

On the whole I am of opinion that it will be best to exclude this Ordinance for the présent.

Ordinance 1 of 1887. Post Office.

15. I agree with Mr. Goodman that this Ordinance need not be excluded. But it has been pointed out to me by Mr. Lockhart that, owing to the known habits of the Chinese in the matter of correspondence, there may be considerable difficulties in carry- ing it into operation, and I should wish you to use considerable discretion in the matter. You may possibly find it desirable to come to some arrangement with the Chinese sub- post offices, such as is in force in the Straits Settlements, and in that case the Governor of that Colony would doubtless be able to give you every information.

Ordinance 21 of 1887. Licensing, consolidation.

16. I concur in Mr. Goodman's opinion that it would be as well not to extend this Ordinance to the new territory for the present.

Ordinance 24 of 1887. Public health and amending Ordinances.

17. I regard this as one of the most important, and at the same time one of the most difficult, questions to be considered in connection with the new territory. I en- tirely agree with Mr. Goodman that the new district must not be left without any sani tary laws, but I consider that it would not be advisable to extend to it without any modification the sanitary laws of Hong Kong. It has been represented to me by Mr. Lockhart that they are too complicated and too advanced for the circumstances of the new territory; and that, although the Sanitary Board may be the best machinery for dealing with the sanitary affairs of Hong Kong, which is in the main a city and a sea- port, it is not suited for the direction of sanitary matters in a territory extending over 376 square miles. Mr. Lockhart is of opinion that the Village Councils and Elders should be held responsible for maintaining their villages in a sanitary condition, subject to the inspection and control of an officer of health and his staff, who should be held directly responsible to the Government. By this means the Village Councils and Elders will constitute the Sanitary Board in each village or group of villages, the influence of the leading men will be enlisted on the side of sanitation, and matters will work more effectively and smoothly than they would under any other system. The expense, more- over, of applying the sanitary laws of Hong Kong would, I am informed, probably be very great, whereas under the alternative system proposed it would be comparatively trifling.

18. I am of opinion, therefore, that these laws should be excluded; but you should lose no time in procuring the enactment of a simpler law on the lines above suggested. And here, again, you may possibly find it desirable to consult the Governor of the Straits Settlements as to the system under which Sanitary Boards are working in the Federated Malay States.

Ordinance 21 of 1886. Spirit licenses.

19. I concur in Mr. Goodman's opinion that this Ordinance should be excluded for the present. It has been suggested by Mr. Lockhart that a spirit farm might be

• No. 58.