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makes it uncertain whether the permanent quarters of the Commissioner will be built on the mainland or on the island of Liu Kung. The question will perhaps not be settled in time to allow of work being begun on these quarters until the latter part of the financial year 1902-03, and an estimate of $15,000 will probably cover all the building work that may be undertaken within the year. This will result in a saving of some $24,000 on the items of $35,000 for the Commissioner's quarters, and $4,000 for his offices.

10. In view of the probable reduction of expenditure on the Commissioner's quarters, &c., the vote for furniture ($4,000) may also be reduced to $1,000.

11. The saving contemplated in the last paragraph but one would have the effect of reducing the payment for engineering supervision by some $1,200.

12. I observe that the item of $4,830 for lighting the harbour is based upon the estimate furnished by the Chifu Commissioner of the Chinese Imperial Maritime Customs Service. In forwarding that estimate in his despatch, No. 19, of the 15th November, Sir A. Dorward expressed the opinion that the estimate furnished by the Chifu Commissioner could be reduced by about $2,050 a year. I approve the adoption of the proposals made in paragraphs three and four of that despatch, and of the reduced estimate therein put forward.

13. Sir A. Dorward's estimate included a sum of $70,000 towards the cost of arrying out the proposals made in his despatch, No. 21 of the 20th November last.t In view of the appointment of a new Commissioner, and the probability of the trans- ference to the civil administration, in the near future, of much of the land owned by the War Department and Admiralty on Liu Kung Tao, I am of opinion that the whole question will require to be examined afresh; and it is improbable that any expenditure will be incurred on this head during 1902-03.

14. It will soon become necessary to establish a civil police force; and I have accepted, provisionally, for the coming year the estimate furnished by Sir A. Dorward of the cost of the establishment of such a force.

15. According to the estimate, an outlay of £1,200 will be required to start the force, and its upkeep may be expected to cost some £1,400 a year. Provision has accordingly been made for $26,000 on this account.

16. Eventually, when the military forces are entirely removed or disbanded, it will no doubt be necessary to spend a larger sum and have a larger and more expensive force, but it is not likely to be necessary to inaugurate the new force for, at any rate, some months yet. In the meantime, I shall be glad if the question of the constitution of the police can be carefully looked into, and the details of Sir A. Dorward's estimate considered, and such recommendations submitted to me as may seem to be required.

17. The reductions contemplated in this despatch amount to $109,300 in all, or subtracting the estimate of $26,000 for a civil police force, to a net total of $83,300. This, however, will still leave a deficit of $119,582 on the year's estimates; and the Lords Commissioners of the Treasury have accordingly agreed to insert in the Colonial Services Estimate a vote for £12,000 as a grant in aid for Wei-hai-wei.

18. This sum will therefore be available to meet the anticipated deficit on the year's working. I need not emphasize, however, the desirability of exercising the greatest caution in controlling the expenditure of the year. Some of the approved items of expenditure will no doubt require readjustment, and there are sure to be unforeseen expenses from time to time. The distance of Wei-hai-wei from this country renders previous reference by post to the Secretary of State in all cases a lengthy process; and the financial condition of the Dependency is prohibitive of frequent recourse to telegraphic communication. The decision of minor-questions involving expenditure must, therefore, be left in an exceptional degree to the discretion of the Commissioner, subject, of course, to previous reference to me wherever possible, and to each case being reported as soon as may be. I have every confidence that the care and economy which characterized the administration of your predecessor will be exercised by his successor.

I have, &c.,

J. CHAMBERLAIN.

7293

67

No. 84.

MR. CHAMBERLAIN to ACTING COMMISSIONER COWAN.

(Confidential.)

SIR,

[Answered by No. 102.]

Downing Street, February 28, 1902. WITH reference to my numbered despatch of even date, I have the honour to transmit, for your information, a copy of the report of a conferencet on the future garrison of Wei-hai-wei, and other questions connected therewith, at which the War Öffice, the Admiralty, and this Department were represented.

2. This report has been concurred in by the three Departments represented at the Conference, and by the Lords Commissioners of His Majesty's Treasury. In ex- pressing his concurrence, however, the Secretary of State for War stated, as regarded paragraphs 3 and 4 of the Report, that he considered that the transfer to the Colonial Oflice of land and buildings which are now vested in the War Office should be subject to the condition that "if at any future period troops are sent to Wei-hai-wei at the request of the Colonial Office or in furtherance of their interests, that department will provide them with barrack accommodation or other lodgings to the satisfaction of the Secretary of State for War; and further, subject to the condition that the transfer of the land and buildings is without prejudice to the housing of the troops who are to remain temporarily."

pro-

3. I caused the Lords Commissioners of the Treasury to be informed that I posed to give the pledge asked for by the Secretary of State for War; but that it was obviously impossible to forecast whether the administration would hereafter become self-supporting, and so able to carry out the undertaking without cost to Imperial

funds.

4. In reply to an enquiry from the War Office, the Secretary of State has been informed that the services of some of the British officers and non-commissioned officers and of the native soldiers now serving in the Chinese Regiment will no doubt be required for the new civil police force at Wei-hai-wei, but that I proposed to consult the new Commissioner upon the subject. I also asked that such of the arms and equipment of the Chinese Regiment as might be suitable for the police force might, if possible, be placed at the disposal of the civil administration for that purpose, as soon as they cease to be required for the existing Regiment.

5. In paragraph 16 of my numbered despatch, I have asked you to consider carefully the question of the constitution of this force, in connexion with the estimate forwarded in Sir A. Dorward's secret despatch of the 12th October last.

That estimate must, no doubt, under the altered circumstances, be considerably exceeded in future years. In the absence of troops a larger force of police will be required than would otherwise be necessary, and it will probably be considered that a non-Chinese element should be included in the police, which will add to the expense.

I have, &c.,

J. CHAMBERLAIN.

9350

(Secret.)

SIR,

No. 85.

ACTING COMMISSIONER COWAN to MR. CHAMBERLAIN. (Received March 6, 1902.)

Wei-Hai-Wei, January 23, 1902. WITH reference to your letter of the 18th October last§ (Wei-Hai-Wei-Secret), enclosing copy of a letter from the Foreign Office, dated 11th October, 1901,|| for report, which report was furnished by Major-General Sir A. Dorward on 12th December last; as bearing on the same subject, viz., Reports to the, detriment of the, Chinesc Regiment, I beg to enclose copy of correspondence that has recently passed between the Chief Staff Officer, China Field Force, Tientsin, and myself, with regard to state- ments which had been brought to his notice regarding this Regiment.

• Not printed.

† No. 66.

• No. 83.

9641

† Enclosure in No. 73. No. 58A,

t No. 63.

No. 71.

§ No. 59.

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PUBLIC RECORD OFFICE

Reference :-

TIC.O. 882

6 PUBLIC RECORD OFFICE, LONDON

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