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should be supreme in the Colony, that the Governor and Council should carry on the routine work, and that, if possible, the trade should not be interfered with, but that the General Officer Commanding should have power by commission immediately on the outbreak of hostilities to direct what measures should be taken for defence, e.y. :—

Deporting of foreigners. Deporting of Chinese. Provision of coolies. Women and children. Policing of fortifications. Seizure of telegraph lines. Laying out of barbed wire.

Obstructing roads, et hoe genus omne.

A house divided against itself cannot stand, and while arguments are going on as to what is to be done, and perhaps authority from home sought, a dangerous crisis occurs, and one which might have been averted by a rapid decision of one responsible authority.

It must be remembered, too, that though the Governor is Commander-in-Chief and Vice- Admiral, he cannot move any Imperial troops without the orders of the General Officer Commanding (Order in Council, dated the 26th October, 1896), and his duties as Vice-Admiral are confined to the Law Courts.

In this divided authority I see a great danger, and though I think it far better that the General Officer Commanding should stand outside the Local Government in time of peace, yet on the outbreak of hostilities he should be made supreme on land.

It is in no way sought to interfere with the trade, but simply to give the military authorities power to carry out proper means in time of war, and to insure prompt action.

I have, &c.

(Signed)

V. HATTON, Major-General,

Commanding in So :th China,

142

APPENDIX II.

Government House, March 9, 1904.

(Secret.) Sir,

WITH reference to my Secret despatch of the 12th ultimo, I have the honour to inform you that since writing it I have found Mr. Chamberlain's Secret despatch of the 14th May, 1897, giving cover to an Order in Council of Her Majesty the late Queen of the 26th October, 1896, which gives the Governor of the Colony full powers for the expulsion of Chinese or other residents from the Colony, and for the employment of forced labour.

These documents were misfiled in such a manner that it was difficult to trace them. They do not appear ever to have been brought to the knowledge of the Local Defence Committee. I have now supplied them to the Committee, who have taken a copy of them.

The Order in Council renders unnecessary the draft Ordinances forwarded with my despatch. referred to above.

The Right Honourable Alfred Lyttelton, K.C., M.P.,

&c.,

&c.,

&c.

I have, &c. (Signed) F. H. MAY, Officer Administering the Government.

APPENDIX III.

(Secret.) Sir,

Despatch of Governor.

Government House, Hong Kong, March 16, 1904. I HAVE the honour to transmit for your serious consideration the enclosed copy of a letter from the General Officer Commanding on the subject of the inadequacy of the garrison of infantry.

Major-General Hatton recently gave me an opportunity of witnessing a field day on which au attack was made on the post, which is allocated for the defence of the Devil's Peak batteries. The post consisted of but fifty men, and it was sufficiently obvious that, unless reinforced from Hong Kong, they were inadequate for the defence of this important position,

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