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latest and most approved pattern, capable of resisting the attack of the heaviest modern artillery. It was perceived from the Parliamentary Papers that it was originally proposed that the very insufficient sum of only £37,500 should be provided for the armament of the new Forts at Hongkong; and the un-official members of the Colonial Legislature gave energetic expression to the dissatisfac- tion generally felt on this point. However, I drew attention to the fact that, from the latest Parliamentary Papers, it appears that this question had been reconsidered by the Military Authorities in England; that the sum proposed for the new armament at Hongkong had been doubled; and that the letter from the War Office to the Treasury of the 1st November ultimo, contains the following paragraph: "At the time the earlier Parliamentary Estimate was framed, it was intended to provide wrought iron guns as possessing sufficient power for the work they would be likely to be called upon to perform. The armaments of the Forts, however, are required to resist the present power of foreign ships which may attack them, and consequently must be of a more formidable nature than was at first contemplated; therefore, some of the guns have been chosen from the latest pattern of breech- loading Ordnance, which has greatly increased the cost."

5. After some discussion the special contribution of £55,625, required by Her Majesty's Government, was voted by the Legislative Council unanimously ;—an important point, for obvious reasons, in a matter of this nature.

6. I earnestly recommend, on grounds alike of Imperial and of Colonial Policy, that, in the terms of the Vote cited above, "the armament to be provided by the Imperial Government should be of the best and latest pattern of breech- loading Ordnance and capable of resisting attacks by the heaviest modern Ironclads."

7. It will be recollected that, in addition to this special vote for Defence Works, Hongkong pays an annual Military contribution of £20,000, which has already amounted to an aggregate sum of above £400,000. Moreover in my despatch No. 380 of the 17th November ultimo I wrote as follows:-

"It is generally urged here by the few Civil British residents (who do not exceed 800 in number, including men, women, and children) that the position of Hongkong is analogous to that of Gibraltar, and that this important naval and military station and great emporium of British trade is maintained chiefly for Imperial rather than for local objects. It is further pointed out that the heads of the Commercial houses, and other principal owners of the vast amount of shipping and other property which it is proposed to protect, are, for the most part, persons resident in England, and not at Hongkong. In fact there is no permanent British population here; and it is felt that there is no analogy between this Imperial Station, with its local revenue of little more than £200,000 on the one hand, and on the other hand, the great self-governing Colonies in Australia and Canada with their large, permanent, and fast growing British population, and their rapidly increasing revenues of many millions sterling, which already far exceed the revenues of several European Monarchies."

I have, &c.,

(Signed)

G. F. BOWEN.

The Right Honourable

THE EARL OF DERBY, K.G.,

So..

fc.,

fc.