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houses by others constructed under better sanitary conditions, or (2) with an obligation attached to the purchase for the building of such houses. Probably the first alternative will have to be adopted at the outset ; and if that should prove financially successful there would be comparatively little difficulty in respect of the second and more convenient one. It is hoped that the cost of reconstruction and the loss of building area from the provision of "back-yards" will be largely compensated by demand for the improved dwellings. If the event should prove otherwise the project need not be pushed further; but I apprehend that it would be worth some cost to the public to get rid of a grave scandal and a serious danger to the public health by the only method yet suggested which would not cause widespread distrust and discontent among the Chinese population. It will however be worth consideration in the future, whether a portion or all of the loss, if any, which may be incurred on resale should not be recouped by a special rate levied on the district benefited or by a quasi-penal rate on houses unprovided with back- yards.

33. (D.) The title of "The Protection of Women and Girls Ordinance, 1889," sufficiently explains itself. The system of purchasing or kidnapping girls, often of very tender age, for the purpose of training them to a life of prostitution seems to be generally prevalent in China, and its suppression in Hongkong is attended with many difficulties. So many are interested in it, and so much of the extraordinary cunning of the Chinese is employed in concealing its operation that its complete extinction at an early date can scarcely be anticipated. It is hoped, however, that this measure which occupied many days in its consideration by the Executive and Legislative Councils, will at least impose a serious check upon it; and will eventually render this abominable trade too dangerous to be any longer attractive.

34. But while the greater part of this Ordinance may be hoped to be productive of unmixed good, there is one special provision of it, passed in deference to the present condition of public opinion in England, which I cannot conscientiously approve and in respect of which therefore I have felt it an obligatory duty to give emphatic support to the protest of the un-official Members of Council. I refer to the clause which gives legislative sanction to the policy, already adopted by executive order before my arrival in the Colony, of terminating the compulsory examination of women. The full expression of my views on this vexed question being inappro- priate to this report, is given in a separate despatch; and it will be sufficient to mention here (1) that "examination" is not only not objected to, but has been shewn by positive proof to be approved and desired, by the whole of the unfortunate class which was subject to it, and (2) that the measure of abolition now adopted is against the wishes of all classes and races of the community.

35. (E.) "The Chinese Extradition Ordinance, 1889," represents an effort to improve the Law relating to the rendition, in accordance with Treaty obligations, of Chinese subjects charged with the commission of crime in China. The principal change is one which, with regard to the rendition of prisoners, lessens the respon- sibility of the Magistrate, and increases that of the Governor in Council, who, however, will now receive the assistance of the Chief Justice, in the consideration of the evidence. There is also a much needed schedule specifying the crimes in respect of which rendition may be granted, and a provision (passed in deference to fears generally prevalent among he intelligent Chinese) by which special security is afforded to persons who have been for a year resident in the Colony. It have dealt at length with this extremely difficult subject in other despatches; and it will be sufficient to say here that, so long as Chinese ideas as to the methods and the sufficiency of proof, are so utterly at variance with the requirements of British Law, it will, I fear, be practically impossible to avoid international disagreements as to what prisoners rightly come under the designation of" criminals" whose extradition is obligatory by the Treaty.

36. Among the principal of the legislative measures now under consideration, the following are among the most important:-(1.) An amendment of the Law regulating Emigration, intended to check the serious abuses which, according to evidence continually accumulating, attend the exportation of the enormous number of coolies, now probably exceeding 50,000, who annually leave the Colony for service in Sumatra, Borneo, the Straits Settlements and elsewhere. (2.) A Law for better defining the powers of the Sanitary Board established by the Public Health Ordinance, 1887. (3.) The constitution of a Public Officers' Widows and Orphans' Funds (4.) An amendment of the Bankruptcy Law. I had much hoped, moreover, to have initiated before now a measure for the settlement of Titles, and for rendering