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7. So far the experiment of taking over one hundred thousand Chinese and bringing their customs as far as possible into line with our ideas of good government has worked satisfactorily. I find the people peaceable and industrious, and I am informed on good authority that they are now quite contented with our rule, and are envied by the inhabitants of the Sam Chun valley that we held in Military occupation for some months. The Captain Superintendent of Police informs me that he hopes before long to be able to reduce the strength of the police force in the different stations, and with economy in the administration of the Territory it will in my opinion pay its way in a few years and leave an appreciable balance to increase the General Revenue of the Colony.

I have the honour to be,

Sir,

Your most obedient, humble Servant,

HENRY A. BLAKE,

Governor, &c.

SIR.

COLONIAL SECRETARY'S OFFICE,

HONGKONG, 7th February, 1900.

I have the honour to submit the following Report on the New Territory since the inauguration of British rule.

DISTRICTS AND SUB-DISTRICTS.

After the disturbance, which occurred when the New Territory was first taken over, had been settled, steps were at once taken to define the Districts and Sub- Districts under section 4 of the Local Communities Ordinance, No. 11 of 1899.

The principle followed in dividing the territory into Districts and Sub-Dis- tricts was to adhere as closely as possible to the divisions recognised by the Chinese inhabitants for many years.

These divisions as a rule follow the natural features of the country. Each sub-district on the mainland is in most cases coutained in a valley, throughout which are dotted groups of villages and small hamlets.

In some cases a sub-district originally arose from the combination of a num- ber of villages. Clan fights have been a common practice in the San On District for centuries and it has not been unusual for groups of villages to combine together for purposes of offence and defence.

➜ Each of the Islands has been treated as a sub-district with the exception of the large island of Lantao, which has been divided into three sub-districts.

When considering the divisions of the territory, it appeared advisable not to include within the Local Communities Ordinance that portion of the territory to the South of the Kowloon range of hills, lying between Liümun on the East and Laichikok on the West. As this area is immediately contiguous with what has hitherto been known as British Kowloon, it was thought best, for police, sanitary, and other purposes, not to treat it differently from the older portions of the Colony, especially as the inhabitants are well acquainted with the laws and customs of Hongkong proper.

The island of Lamma also, owing to its proximity to Aberdeen, was excluded from the operation of the Local Communities Ordinance.

On the 25th of May, a list of the chief districts and sub-districts on the mainland and islands was gazetted, and a supplementary list was published on the 7th of July.

NUMBER OF DISTRICTS, SUB-DISTRICTS AND VILLAGES,

The territory has been divided into 8 districts and 48 sub-districts. An alphabetical list of village has been compiled. villages on the mainland and in the islands amounts to 597.

His Excellency

Sir HENRY A. BLAKE, G.C.M.G.,

The total number of This number includes

Governor, &c.,

HONGKONG.