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I kept this till the Secretary of State had decided on the questions of principle raised in my report on the Malayan service, as it was necessary to know whether he would accept the system of duty allow-
ances.
an
Before proceeding to discuss this despatch, I should like to explain my proceedings in Hong Kong. On 17027/1910 it was said that I was to "proceed to Hong Kong and hold a similar enquiry there" ( i.e. enquiry similar to that which I had been conducting in the Malay Peninsula), but as soon as I arrived in "ong Kong it became quite obvious to me (indeed it was fairly clear from 17027) that Sir F. Lugard was hurt and rather resentful at the idea of anybody holding an enquiry in his Colony, and that if I attempted to do anything of the kind I could not look for any assist- ance from him. There was no real scope for a formal enquiry, and in the circumstances I felt sure that the Secretary of State would not wish me to insist on an adherence to the letter of my instructions when it was possible to avoid friction and do all that was
necessary by taking another course. I accordingly told Sir F. Lugard that all that I was really wanted to do was to discuss the subject with him in the light of the proposals that Sir J. Anderson and I had agreed
upon in order to see how far any changes in principle might be applied to Hong Kong, and that I did not pro- pose to do anything more, excet absorb "local colour",
The
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