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9. The food supply for the garrison, which is not in my opinion sufficient, is (in reply to a telegram from me) to be at once raised to three months.

10. The existence of torpedo-boat destroyers, now fairly numerous in these waters, seems to be ignored; it should be acknowledged in the premises of the Scheme, and counteracted by an increase of Q.F. armament, ammunition, and lights.

11. I consider the question of deporting the citizens of a foreign Power, in case of war with that Power, should be faced and provided for. I instance the case of a large German Colony here, and suggest that the feelings of affection for one's "original" country might overbalance the gratitude due to a country of adoption.

As to the Chinese, who are very numerous, I am strongly of opinion that their numbers should, if necessary by force, be reduced to nothing but coolies or other useful members. The late Governor states that the bulk would bolt, but a clever enemy might try to prevent them bolting in order to be a weight on the defenders, and a weight they would be if, for instance, they were starving and knew there was food on the island. I believe many of the Chinese settle here to avoid taxation in their own country, but that does not seem to me a reason why we should tolerate them in war time at great risk to ourselves. The increasing defence works tie up more and more of the limited garrison, which, consequently, can hardly be considered adequate to meet attacks from the Chinese.

12. I would particularly direct attention to the enhanced importance of Mount Parker, now that the new batteries on Devil's Peak will shortly be mounted.

I consider Mount Parker the key to the defences; its loss would probably entail the destruc- tion of the eastern defences and the loss of the island; its recapture would be costly beyond the powers of the garrison.

13. As regards the details for the defence, I have already remarked on the transport ques- tion, but I consider that the provision of 150 mules is essential. They can well be worked. They would not, however, take the place of the 7,000 coolies required for the naval and military forces.

The sections of defence are now four. The change will, I am sure, be found favourable.

As regards armament, both fixed and movable, I have inspected all sites proposed. I have listened carefully to the arguments both of the C.R.E. and the O.C.R.A. in every case, and I am much obliged to Colonel Brown, R.E., and Major Bryan, R.G.A., for their well-thought- out opinions.

Personally, I would let all the world know of the examination lines, and declare their adop- tion at once in the event of hostilities.

The laying of the mine-fields has been worked up in a most exemplary way by Major Baker Brown, R.E.; mines which a few years ago took all day to lay, with several faults, are now laid in six and a-half hours, and with, perhaps, no faults.

The armaments, with their component parts, e.g., F. C. stations, search-lights, fixed lights, telephonic communications, progress, but far too slowly; for instance, the batteries on Devil's Peak, which should have been ready last May, are not yet ready. This is partly accounted for by an 'unexpected" hard soi! being found, but I think that the chief reasons for delay are the interminable disputes on land questions and the numerous Departments from which communications come on defence matters. For not only do communications emanate from the Adjutant-General to the Forces, the Quartermaster-General, the Director-General of Military Intelligence, the Inspector-General of Fortifications, the Director-General of Ordnance, the Principal Ordnance Officer, Woolwich, but from the Colonial Defence Committee, the Admiralty, the Indian Government, as well as the Local Government in its various Depart-

ments.

The traffic question has been quite admirably dealt with by Major Baker Brown, R.E., aud regulations will be formed on his lines.

There should always be at least one strong British battalion here. This is not the case at present.

The defences of Hong Kong are expanding, and, as the batteries are completed, should be able to be manned at once. The Artillery personnel should therefore not be allowed to fall below that fixed for the approved armament. This has not been the case during the past

year.

There undoubtedly should be a Colonel on the Staff as Commanding Royal Artillery; there should also be a Brigade Major of Infantry.

14. That portion of the Scheme given in Chapters 1, 2, 3, and 4 of Appendix should be printed by the Local Government printers, to save the long delay caused by printing them in London.

15. The actual conduct of the defence is likely to be hopelessly crippled by a division of authority. The Naval Commander-in-Chief is supreme at sea, and the opening or closing of the harbour will be managed under his orders.

On the other hand, there is no one supreme on land. It will be seen, by reading the Proclamation issued by the Colonial Secretary, that the Governor himself proposes to take in hand certain measures, such as signals of the arrival and departure of hostile forces, the enlistment of volunteers, &c., while at the same time he declines to be responsible for the provision of coolies, and dissents from the military recommendations as regards the safety of the women and children.

The dockyard and magazines are all-important. They are Imperial property, and surely the Home Government should be satisfied that full provision is made for the safety of its property.

I am therefore of opinion that in the event of hostilities the General Officer Commanding

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