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question was one of much importance, it would be iny duty to consult the Execu- tive Council before arriving at a conclusion. This I took an early opportunity of doing, and the Council unanimously agreed with me that if the wording of the resolutions, as at first submitted, were somewhat modified, there was nothing in them to which the Official Members need take exception, and this decision was concurred in by the Officer Commanding the Troops, Major-General BEVAN Edwards, whom I especially requested to attend the Executive Council in order that I might have the benefit of his opinion.

I again communicated with the Un-official Members, and they consented to modify the wording of their resolutions in such a way as to meet the wishes of myself and the views of the Executive Council.

4. In these circumstances it was agreed that when the vote for the increased amount was moved no opposition should be offered, and that, so soon as that vote was agreed to, the Senior Un-official Member (Mr. RYRIE) should ask permission for the Standing Orders to be suspended so that he might at once move his resolutions.

This course was accordingly taken and when the vote for the increased amount had been unanimously carried, Mr. RYRIE moved his resolutions which were seconded by Mr. MACEWEN. Both these gentlemen made some observations, explaining the action taken by the Un-official Members.

The Colonial Treasurer, Mr. LISTER, made a short speech in which he referred to certain statistics mentioned by Mr. MACEWEN, and, after a few concluding words from myself, the proceedings came to an end.

5. I forward herewith a copy of the resolutions, and I trust that Your Lordship will not consider that either myself or the Official Members acted in a way incompa- tible with our duty in allowing them to pass unopposed.

6. The question at issue really was whether the votes of the Official Members should be recorded in opposition to those of all the Un-officials, or whether the Official Members would consent to pass unchallenged the Resolutions referred to.

7. I enclose for Your Lordship's information an account of the debate as reported in the Hongkong Daily Press which accurately describes what was said on the occasion.

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From this Your Lordship will see that Mr. MACEWEN referred to the possibi- lity of Madras troops being sent out in lieu of a certain number of Europeans, and I will mention to Your Lordship the reason why, I believe, these remarks were made. So soon as Your Lordship's Despatch of the 20th January arrived, I sent a copy of it to Major-General EDWARDS, as it was a matter which so materially concerned the Military. General EDWARDS in returning it to me mentioned that he believed it to be the intention of the Imperial Government to send, as one of the Battalions of Infantry mentioned in Appendix 4 to the Despatch, a native battalion of Madrassees. As I did not wish to in any way deceive the Un-official Members in agreeing to a compromise in the matter, I told them, at the interview to which I have above referred, of the information the Officer Commanding the Troops had communicated to me. They however said that, in so far as they were concerned, they must take what was stated in the Despatch to be correct, viz. :-that the total number of Europeans of the proposed garrison would be 2,525 men.

8. It may be that if it was at one time contemplated to send Madras troops, such idea has been abandoned, but in case of any error on this point existing in Your Lordship's Despatch, I have only to say that the sending of a battalion of Madras troops here would be regarded with much disfavour by the community, the Madrassees being looked upon as the most unwarlike and the least efficient among the soldiers of the Indian population. If, however, any other than European troops