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lunatica who are British subjects should be disposed of in the same manner. I do not agree in this view, and unless you direct otherwise I propose to retain in the Hongkong Asylum Chinese lunatics born in Hongkong or who ere for any other reason to be regarded as British subjects. Chinese lunatics who have but recently arrived in Hongkong should be at the charge of the Chinese Government and that Government has acknowledged responsibil
-ity for them, a
and indeed for all lunatics who are Chinese subjects.
But as they have no Asylum this admission of responsibility does
not assist in the solution of the present difficulty. They may
make arrangements later to meet their om liabilities in this
matter.
3.
I have had the Institution inspected by Dr.
Bell and I enclose his report thereon which may be considered to be satisfactory. With the aid of the grant which it is proposed to
make considerable extension can be Lade in the accommodation.
4.
The amount of the proposed rant is 83,600
per annum. The Provisional Chinese Government pay the Institution 860 a year for each lunetic they send there and the sum mentioned is based on the number of lunatics from Hongkong that the Institution will on the average be asked by this Government to
maintain.
0.
The arrangement is a more economical one than could be made by this Government and I shall be led to receive your permission by telegraph to provide the sum in the Estimates
for 1913.
I have the honour to be, Sir,
Your Lost obedient, humble servant,
2
Governor, ác..
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