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6. The building of the new Government magazine on Green Island is about to be commenced, and is recognized as an urgent work, which will be pushed forward with all possible dispatch.

7. Under the Peace Preservation Ordinance (No. 15 of 1886), the Governor in Council has power to deport from the Colony any person not a natural-born subject of His Majesty, whether such person has been naturalized or not, whose banishment appears to the Governor in Council to be necessary for the public safety. This provision gives ample power to deal with individual aliens, even in large numbers, whose presence in the Colony might be considered, after due inquiry, to be inimical to the public safety. Moreover, all the subjects of a foreign Power with whom England might be at war can be required to leave the Colony in accordance with the usage of international law. No additional powers seem necessary to deal with deportation referred to in the first part of paragraph 11 of Major-General Hatton's letter. With regard to the wholesale deportation of Chinese with a view to the reduction of the population requiring to be fed, suggested in the last part of the same paragraph, I submit that it would be a dereliction of our national duty to deport any who were possessed of property here, or who had lawful avoca- tions remaining for them to follow in time of war. If, however, there remained, after the outbreak of war, a surplus population of Chinese with no property in the Colony, no employment, and no means of subsistence, I am of opinion that they might properly be deported in the public interest, and that an Ordinance should be enacted on that behalf, should the necessity arise. On this point also I have consulted the senior Chinese unofficial member of Council, and he agrees that deportation might properly be resorted to in the public interest in respect of the class of persons I have indicated. I may mention that there are at all times a very large number of coolies employed on various public and private building operations and other undertakings in the Colony, large numbers of whom would in all probability be thrown out of work in time of war. I submit that it would be preferable to deal with this matter constitutionally by means of a special Ordinance rather than resort to the extreme measure of proclaiming martial law in order to carry out the object in view, and I inclose draft* of such an Ordinance as I think would meet the case.

8. In paragraph 12 Major-General Hatton draws attention to a very important point, which has apparently previously escaped the notice which it deserved.

The defence of this additional position entails the employment of additional troops, which cannot, as I read the Scheme, possibly be spared. It is evident, therefore, that on this ground alone an addition to the garrison is desirable. I have no claim to be able to give anything more than the opinion of an amateur on the question of the strength of the garrison. But I have an intimate knowledge of the ground which must be occupied in more or less strength for the defence of the Colony, and I am strongly of the opinion that the garrison is at present inadequate for the safety of the Colony, and that an addition of 3,000 infantry and garrison artillery is required. Paragraphs 5-8 of Chapter I of the Scheme describe the line of defence to be held. It covers a length of 23 miles, I believe, and the paragraphs referred to indicate its difficulties. 1 submit that a garrison of some 4,000 men is not adequate for the task.

9. In view of the distance to be covered and the difficult nature of the ground, I concur in for Major-General Hatton's recommendation that 150 mules, exclusive of coolies, are necessary transport purposes.

10. I come now to Major-General Hatton's recommendation that, in order to place the conduct of the defences on land in one hand, the General Officer Commanding should, in the event of hostilities, be constituted the supreme authority in the Colony.

The relations between Major-General Hatton and myself have, as he himself states, been so cordial, that I know he has made this suggestion in no personal spirit but solely in the interest of the defence of this important portion of the Empire.

Major-General Hatton has since his arrival only a short time ago accomplished much in providing armament to important positions which, through delays, no doubt scarcely avoidable, have remained undefended. Ile is evidently animated by a spirit of determination to leave nothing undone to bring the defences which have been committed to his charge into a satisfactory condition. Any recommendations of his, therefore, are worthy of the most serious and earnest consideration, and I have endeavoured so to consider this one.

have already indicated how the deportation of foreigners and of Chinese, the provision of coolies for transport and other services, and of refuge in a last resort for European women and children may be dealt with. Ordinance 10 of 1891 gives legal power to deal with trespassing on forts, and if, in the event of war, when the forts would no doubt be manned, police are required to enforce that law, I anticipate no difficulty in rendering the necessary assistance by the regular police or special constables. Assistance could be similarly given in protecting the places where the telegraph cables are brought to land. As for the laying out of barbed wire and the obstructing of roads, it is hardly conceivable that any Governor would oppose the recommendations of the responsible military authorities in that behalf. In the most important of the matters above referred to, the deportation of foreigners and Chinese, the provision of coolies, and of a refuge for women and children, I am of opinion that the civil authority, being in closer touch with the Chinese population (the majority of whom, I would again insist, will be as much interested in the successful defence of the Colony as the English population) and having the whole body of the Civil Servants, who are accustomed to deal with the population, to assist it, will be found in practice best able to deal with these questions not only without friction but probably with the loyal co-operation of the large majority of the civil community.

More drastic measures than any involved in dealing with these matters may be necessary

*Not printed. See Appendix II.-SEC. C.D.C.

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