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to hand it over, because the Chinese Customs were not to be allowed to remain within the New Territory. To that despatch, after receiving your approval, I replied that under instructions from Her Majesty's Government I would proceed at 1 p.m. on the 17th to hoist the British flag, and invited His Excellency to name an Official of suitable rank to be present at the ceremony. On the 15th, I was informed that Deputy WANG, who had been the Chinese Commissioner for the delimitation of the boundary, had been sent down by the Viceroy with 300 soldiers to Kowloon. On receipt of the message from Captain BERGER, of the Hongkong Regiment, that he was opposed by the Chinese troops with guns, I sent for Deputy WANG, and demanded to know if these men were Chinese troops. He said "No," adding that the Viceroy had sent him down to see that 300 men should be placed in the New Territory to "protect it" until I took it over. I told him that I had determined to hoist the flag next morning and that all Chinese soldiers and officials must leave the leased area. On the 17th, the Commissioner of Imperial Customs conveyed to me that Deputy WANG wished to see me, and shortly after he waited upon me accompanied by Mr. HILLIER, the Chinese Commissioner of Customs. Deputy WANG was anxious to discuss the Customs question about which he had evidently been sent down, but I declined to enter upon the subject. I told him that I could not permit Chinese troops to remain in the Territory and at Kowloon, and could not understand why the Viceroy should have considered it necessary to send to Kowloon an additional force of 300 men two days before the date on which I announced that the New Territory would be taken over. He pressed the question for some time, and in the course of his remarks said something which the Chinese Customs Commissioner did not translate saying it was mere folly, but Mr. MANSFIELD, Her Majesty's Consul at Canton, who was present, at once interpreted it as a statement that the 300 soldiers had been sent down to protect the Customs. I told him that it was necessary that these men should be withdrawn; he promised to telegraph to the Viceroy, and, if no answer was returned, to go to Canton himself, although from the known state of the Viceroy's feelings he had little hope of obtaining the necessary authority to move. I made it clear that it would be necessary for the soldiers to withdraw whatever the state of the Viceroy's feelings. Deputy WANG stated that there were several parties of soldiers stationed all through the Territory which he would order to come to Kowloon. I said that those should be ordered to retire to Sham Chun rather than to Kowloon, to reach which place they would be obliged to march across the Territory and over the hills.

19. I have stated that my proclamation was posted in different parts of the leased area on and after the 7th instant. In the absence of Mr. STEWART LOCKHART, who is in the New Territory, I cannot say what arrangement was made for posting it, but I presume that some native of the district was employed to post them in the usual manner. On the 20th instant, I received a petition from a wife of a man named CHEUNG-TSOI who was, it appears, employed to post those notices. He had posted, or distributed some, for evidence since forthcoming shows that when the leaders were declaring for resistance they said that this man must be killed if he returned to his village from Hongkong, where he then was, with any more proclamations. The evidence goes to show that early on the morning of the 18th he left Hongkong for Castle Peak Bay en route for his village of Ha-Ts'ün, time a large number of the people, who had been called to arms, were assembled at Castle Peak Bay. It is not clear if the man carried any of my proclamations with him, but he was seized at Castle Peak Bay and sent as a prisoner to his village where he was confined in the meeting-house. After the defeat at Kam-T in the leader, whose name is known, with others, came to lla-Ts'ün, beat the man, and then shot him; put the body in a pig basket and flung it into the river. The body was subsequently found with a chain tightly fastened round the neck, and several shot wounds. Apart from the attack upon the troops this is the only outrage that has taken place during the week after the 15th instant.

At the

20. In searching this meeting-house Mr. STEWART LOCKHART has discovered several letters, which show the course of events previous to the outbreak of violence. And he has further obtained the statements* of two of the leaders in the movement, who have submitted and expressed contrition. The statements and the letters show a state of clan feeling and power of combination not unlike that of the Scottish bighlands two centuries ago, and it is evident that there was no secrecy whatever in the clan meetings and public discussions on the question of resistance. Nor there was any secrecy in the manner in which help was asked for and given by affiliated societies in the turbulent district north of the border. They could

* See Enclosures in Colonial Secretary's Minute to Governor dated 24th April, 1899,