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3. During the greater part of January, Canton was reported to be almost entirely free from the disease, but towards the end of that month it became more prevalent there. This fact materially altered the state of affairs and as, in view of the difficulty of restricting the passenger traffic from that port, from which Hongkong derives the greater part of its food supply, the Colony was in any case exposed to the danger of the introduction of cases from thence and as the number of persons in segregation amounted to over 200 and was rapidly increasing, the Sanitary Board resolved to abandon the system of isolation ou marriage boats. It was accordingly decided that such of the inmates of infected houses as desired to do so should be permitted, after their clothing had been disinfected, to proceed to Canton, their departure being supervised by the Police, and a sufficient sum of money being given to each person to defray the cost of his passage and his necessary expenses during the voyage.

4. Towards the middle of February the number of cases occurring daily began to show an appreciable increase, and the disease ceased to prevail only in a single district, but appeared to be spreading over the whole City. Consequently on the 19th of that month it was declared by the Sanitary Board to be epidemic and from that date the Health Officer of the Port ceased issuing clean Bills of Health to vessels leaving Hongkong.

5. About the same time the ordinary staff of the Sanitary Board was increased by the appointment as temporary Inspectors of Nuisances of nine European Police constables who were entrusted with the duty of aiding in the supervision of the inspecting, cleansing and disinfecting of houses.

6. It is a somewhat remarkable fact that during the latter part of February and the first three weeks in March, while the disease was increasing in Hongkong, Canton was reported to have become almost entirely free from it; the immunity it enjoyed being attributed by the Chinese to the cold weather which prevailed during that period.

7. It was, of course, not to be expected that the Chinese would submit with any great complacency to the compulsory inspection, disinfecting and cleansing of their dwellings, which cannot be carried out without causing some discomfort to those concerned, and though, I am happy to say, that they have shown themselves this year more ready than in 1894 to recognise the absolute necessity, in the interests of the public health, of the sanitary measures which have to be adopted, they nevertheless have displayed great unwillingness to come forward to report cases of plague coming under their cognisance. Innumerable have been the devices and subterfuges to which they have had recourse in order to remove patients and corpses from the Colony without the knowledge of the authorities, and, in many instances, with a view to avoiding enforced segregation, they deserted their houses, leaving victims of the disease dead or dying, the bodies not having been discovered till some days after death. One case was brought to light in which a corpse was being conveyed secretly out of the Colony as merchandise in a camphor-wood box.

8. In order, therefore, to allay the suspicions and apprehensions of the Chinese, who as a people are naturally timid, and to induce them to report cases with greater readiness, it was decided, towards the end of March, to permit them to remove their sick to Canton under certain conditions, a copy of which is enclosed, and this privilege was shortly afterwards extended to the removal of corpses. Although this concession has been availed of only to the extent of the removal to Canton of one patient and four bodies, I am of opinion that the grant- ing of it has tended to calm the minds of the native population and to discourage the concealment of cases from the knowledge of the authorities.

9. I am glad also in this connection to be able to state that although a good many of the well-to-do Chinese have removed their wives and families from the Colony, and although the attendance at most of the schools has greatly diminished,

Enclosure 1.