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Police Force. This proclamation is held, and obviously rightly so, to be ultra vires. Now applica- tions are sent to the Registrar General who endorses his recommendation or otherwise, then to the Colonial Secretary, who sends them to the Surveyor General as to structural matters, and to the Magistrates, (who are not in a position to obtain information), for a report. The document is then returned to the Colonial Secretary who submits it for the Governor's decision; he again receives it and sends the permit to the Registrar General, who returns the application to the Colonial Secretary, who sends notice to me as Head of the Police Force, and in numerous cases I receive the document after the expiry of the date on which the event took place. I must submit that it is time a less cumbrous process was adopted, and probably the simplest course would be for the Chief of Police to deal with such matters when outside and the Registrar General when inside buildings, subject always to the decision of the Surveyor General on structural matters. The right of appeal to the Governor being paramount, no special allusion need be made to it. The late Mr. MAY, when Chief of Police, gave this opinion on the subject of Licences for Religious or Theatrical entertainments. "I am of opinion that the granting of such permission should be in the hands of the executive Police. This power was by Ordinance 14 of 1845 vested in the hands of the Chief Magistrate, but practically it devolved upon the Superintendent of Police, because the Chief Magistrate invariably made reference to that Officer. As a fact there are few Religious entertainments, although Religion is often advanced as a plea; firing off crackers, musical parties, &c., are all called "Chin-chin_joss," but these bear as much relation to the religion of the Chinese as the institution of "Greenwich Fair" does to the religion of the inhabitants of London. The proper person to judge of the policy of granting or recom- mending such indulgence, or minor invasions of the letter of the law, must be the Officer having the responsibility of preventing disorder and annoyance to the public and ready power of preventing the abuse of the indulgence if granted."

12. The various Police Stations suffered a great deal from the lowness of the Colonial Funds. The guard house at Hunghòm has however been rebuilt and the out houses are a vast improvement from a sanitary point of view to those attached to most of the Stations. Stanley Station, having, through want of money, been for nearly two years unavailable, was in July last handed back to the Police, but the summer rains soon showed the upper floor to be comparatively uninhabitable from leakage. Subsequent defects have been developed, which plainly show that the building of the upper story many years ago was not carried out efficiently, with the probable result that it must be taken down and rebuilt before the building is really habitable. At the Water Police Basin, davits and a flight of steps are still wanting, which want contributes to the deterioration of the boats, and the endangering of the men when embarking. The scarcity of married quarters is greatly felt, and the high rates of rent now charged render it difficult for men to obtain rooms with the allowance granted by Government. The health of the Water Police has improved since the removal of the men from the Hulk to the Station at Kaulung Point, but Whitfield Station has from the number of cases off ever proved very unhealthy to the occupants. The drains are now being thoroughly repaired and the undergrowth around cut away. If after this no improvement is shown, the cause must be attributable either to the recent earth cutting in connection with the neighbouring fort, or to the rapid silting up of the foreshore.

13. The heavy fall in the value of the dollar, which is now quoted at 3/33, is a matter which must tend to the increase of the cost of the maintenance of the Police Force. It is beyond dispute that the cost of all commodities has considerably increased.

14. I am happy to be able to report that the general conduct of the Force, as witnessed by the diminished amount of fines and punishments inflicted during the year for breaches of descipline, has been very satisfactory; and that I have received the faithful support of the officers and men in the discharge of their respective duties under circumstances that on more than one occasion might have tended to dishearten them.

I have the honour to be,

Sir,

Your most obedient Servant,

W. M. DEANE, Captain Fuperintendent of Police.

The Honourable FREDERICK STEWART, LL.D.,

Acting Colonial Secretary,

$6.