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for instructions on certain points connected with the recent acquisition of territory on the mainland adjacent to that Colony.

2. Mr. Chamberlain is disposed to think that the Government of Hong Kong ought in fairness to pay for the buildings in the new territory evacuated by the Chinese Imperial Customs; but, before answering the enclosed despatch, he would be glad if Lord Salisbury could inform him whether payment was made for any public buildings evacuated by the Chinese in the territory leased to Her Majesty's Government at Wei-Hai-Wei.

3. Mr. Chamberlain would suggest that if Lord Salisbury agrees that the Colony should pay for the buildings in question, their value should be set off as an item against whatever compensation may be eventually claimed from the Chinese Government for the connivance of the authorities at the disturbances that took place when the territory was taken over.

335

2. Mr. Chamberlain proposes, unless the Board see any objection, to ask the Governor to consider and report whether it is necessary to keep up both the lighthouse on Waglan Island and that at Cape d'Aguilar; adding, however, that in any case the Waglan Island light must be maintained.

3. In this connection I am to refer the Board to the correspondence that took place in 1888, when the question of constructing a lighthouse on Gap Rock was under consideration, and especially to paragraph 7 of Sir G. des Voeux's despatch, enclosed in the letter from this Department of the 22nd of August, 1888.*

23741

I am, &c.,

C. P. LUCAS.

24081/8.

No. 240.

I am, &c.,

C. P. LUCAS.

No. 242.

MR. CHAMBERLAIN to GOVERNOR SIR H. A BLAKE.

(No. 191.)

་

SIB,

Downing Street, September 14, 1899.

SIR,

(Secret.)

COLONIAL OFFICE to FOREIGN OFFICE. [Answered by No. 245,]

Downing Street, September 13, 1899. I AM directed by Mr. Secretary Chamberlain to acknowledge the receipt of your letter of the 8th instant, enclosing a copy of a despatch from Her Majesty's Chargé d'Affaires at Pekin, reporting the result of his communications with the Tsung-li-Yamen respecting the indemnity of $150,000 demanded from the Chinese Government in re- pect of expenditure incurred in consequence of Chinese opposition to the occupation of the newly-leased territory.

2. It would appear from this despatch that the Chinese Government have de- finitely refused to pay any compensation; and in these circumstances Mr. Chamberlai. would be glad to know what further action the Marquess of Salisbury proposes to take

in the matter.

3. It is obviously undesirable that the military occupation of Sham Chun should be prolonged indefinitely; and it will be seen from the enclosed copy of a despatch," with original enclosure lately received from the Governor of Hong Kong that, under existing conditions, the Chinese residents in the Sham Chun Valley are likely to be- come less and less amenable to control

Mr. Chamberlain, as Lord Salisbury is aware from the letter written to the Foreign Office on the 5th of June,t was then of opinion that the boundary as delimited by Mr. Lockhart and the Commissioner of the Viceroy of Canton should be adhered tc. Bhaan Chun being restored to China; and His Lordship concurred in that opinion, but since that date more than three months of British occupation have elapsed, and it appears to Mr. Chamberlain that unless it is likely that there will be an immediate settlement of outstanding questions, it will be necessary to proceed on the assumption that Sham Chun will not be retroceded, but will be permanently annexed to the leased territory.

I am, &c.,

18614.

No. 241.

COLONIAL OFFICE to BOARD OF TRADE. [Answered by No. 263.]

C. P. LUCAS.

Downing Street, September 13, 1899.

SIR,

I AM directed by Mr. Secretary Chamberlain to enclose, for the consideration of the Board of Trade, an extract from a despatch§ from the Governor of Hong Kong, raising the question of the maintenance of the lighthouse on Waglan Island, which is included within the limits of the territory recently leased to Her Majesty's Government.

• No. 238.

‡ No 182.

† No. 233.

Paragraphs 1 and 3 of No. 228.

I HAVE the honour to acknowledge the receipt of your despatch, No. 212, of the 4th ultimo,† reporting the execution of Tang Cheung Sz and Cheung Tin for the murder of Tang Cheung.

2. Having regard to the exceptional circumstances of the case, I approve of your proposal to defray from public funds the cost of the maintenance and education of one of the sons of the murdered man.

3. I have been glad to note your appreciation of the energy displayed by Mr. May in dealing with this case.

25028.

SIR,

(No. 224.)

No. 243.

I have, &c.,

J. CHAMBERLAIN.

GOVERNOR SIR H. A. BLAKE to MR. CHAMBERLAIN. (Received September 18, 1899.)

[Answered by No. 257.]

Government House, Hong Kong, August 16, 1899. THE division of the New Territory into districte having been completed by Mr. Stewart Lockhart, after personal inspection and very careful consideration, and the District Committees appointed by me under the provisions of Ordinance No. 11, of 1800, I determined to call the Committee-men together, and to explain to them personally the principles upon which I proposed to conduct the Government in the leased area.

I accordingly issued a notice inviting these members of Committees to meet me, those from the eastern portion of the district at Teipo-Hui on the 2nd instant, and those from the western district at Ping Shan on the 4th.

2. The New Territory is divided into nine districts and 47 sub-districte. The Committee-men number 455, of whom 284 belong to the eastern portion of the New Territory, and 171 to the western.

3. On the 2nd instant I proceeded to Taipo-Hui in Her Majesty's ship "Pigmy" where I met between two and three hundred of the gentry and elders who had been appointed members of the various committees. I had written my observations, which were translated into Chinese, several hundred copies of the speech being printed for distribution. I read the speech paragraph by paragraph, Mr. Lockhart repeating each paragraph from the Chinese copy. At the conclusion a spokesman of the elders read a reply, after which I invited them all to adjourn to a large matshed, where I had pro- vided tea, cakes, and cigars for them. I enclose copies of my observations and their replies.

4. On the 4th instant I proceeded to Castle Peak Bay by launch and then by chair to Ping-Shan, which is situated in a flat and most carefully cultivated valley about seven

• 16509 88: not printed.

↑ No. 237.

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