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(Secret.) Sir,

APPENDIX I.

Covering Despatch of Governor.

Government House, September 5, 1904. I HAVE the honour to forward herewith the Defence Scheme for Hong Kong, revised to September 1904, in accordance with the Colonial Defence Committee's Remarks Nos. 340 R and and 347 R, dated the 27th January and the 9th May, 1904, respectively, on the revisions of the Scheme to June 1903 and January 1904. I also enclose correspondence on the subject of the revision with his Excellency the Major-General Commanding.

2. Dealing in the first instance with Major-General Hatton's letter of the 25th August, I would point out that the selection of Mr. F. H. May, C.M.G., to be a member of the Local Defence Committee for the purpose of considering the matter of the provision of the coolies required by the garrison for and during mobilization, has resulted in practical arrangements being made for this provision, the difficulty of which, as well as the actual requirements having been somewhat exaggerated in the past. 3,686 coolies are required on the first day of mobilization, the number rapidly diminishing day by day to 948 when mobilization is complete. Of the 3,686, 1,686 cau be obtained by the Officer Commanding Army Service Corps under existing contracts, leaving 2,000 to be provided by the Captain Superintendent of Police under the orders of the Colonial Secretary. These men as they come in will be sent to the Army Service Corps contractor for distribution under the Officer in charge of Transport.

3. With regard to the third paragraph of the letter, I am in communication with the Commodore on the subject of handing over the obsolete torpedo nets to the Dock Companies, and as to the instructions to be issued to those Companies with reference to the fixing of the nets at time of probable attack.

4. The shortness in the strength of some of the units of the garrison as compared with the establishment, pointed out by the G.O.C. in paragraph 4, is most apparent in the case of the Native Infantry Regiments, of which the total number of n.c.os. and men on the first of this month was 2,153 in place of 2,691. There is also some shortage in the District Establishment of Royal Artillery. I should be grateful if effect could be given to the opinion of the Colonial Defence Committee, expressed in paragraph 7 of their Remarks No. 347 R, "that the approved establishment of the garrison, in infantry and artillery, should always be maintained."If for administrative reasons it is not possible to arrange for the Native Infantry Regiments being continuously up to strength, I suggest for consideration that two more companies of the British infantry regiment now divided equally between Hong Kong and North China should be trans- ferred to the former station, so that the establishment of its garrison should approximate more closely than it does at present to that recommended by the Colonial Defence Committee in their Memorandum No. 264 M, dated the 25th June, 1901.

The detailing of a large proportion of the small British Infantry force to telephone duties in war is certainly undesirable. These duties must of course be performed by men of intelligence whose native language is English, but they do not necessitate any real military training. The practicability of supplying telephonists from among the subordinate Civil Servants in the Police and Sanitary Departments, whose services could be made available in time of war, is now under consideration. It does not seem to me to be necessary that these men should be Volunteers, but arrangements would be made for them to attend at practice mobilizations so that they could then learn the duties required of them.

I cannot but concur with the G.O.C. that the increase in the defence measures to be worked by the Royal Engineers should be met by a corresponding increase in the strength of the Corps at the station, and I trust that his proposal to add thirty men to the establishment of w.os., n.c.os. and men of the Submarine Mining Company may be adopted at an early date.

For reasons similar to those given by Major-General Hatton with regard to the Engineer Volunteers, it is not possible to rely on the full establishment of any branch of Volunteers as laid down in the Defence Scheme being available for the purposes of that Scheme. I am taking various steps (which I shall report to you when they have reached a later stage) to increase the strength of the Volunteers in the Colony, and in this am receiving support from the community. But it must be borne in mind that the Volunteers are drawn either from Government establish- ments, whose work would be increased rather than diminished in war, or from private firms and companies whose business would suffer if a large proportion of their British employés were with- drawn for a considerable period. This would conflict with a leading principle to be kept in view in the Defence Scheme, viz., the maintenance of trade throughout war. propose therefore that when the Scheme for Hong Kong is next revised it should assume that only half the then strength of the Volunteers is available at any time. I trust that by then the strength will be largely increased.

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5. I have dealt with the question of Port War Signals in my Confidential despatch of the 4th August last.

I may here mention, with reference to paragraph 12 of the Colonial Defence Committee's Remarks No. 340 R, that the use made of lighthouses (Gap Rock and Waglan) for the signalling

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