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respectively by them without prejudice to the final adjustment between the Imperial and Colonial Governments at the conclusion of the war.

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on

From the wording of Chapter III (K) and of Chapter VI (i) (3) it might be inferred that the Colony will be only chargeable with a few minor services (including expenditure by the Harbour Master for the examination service, but not that by the Director of Public Works for field works), and that other expenditure is behalf of" the War Office and Admiralty. It might equally be claimed that much of the War Office and Admiralty expenditure is on behalf of the Colony. Attempts to determine the ultimate incidence of war expenditure are to be deprecated as likely to cause inter-departmental friction and delay on mobilization. The approved arrange- ment, under which funds are provided for a service by the Government under which it is administered, supply an intelligible and economical modus vivendi which is in no way unfavourable to Colonial interests.

wo. 083

4264

M.81

Chapter IV.-Instructions to Section Commanders.

36. Page 105 (i).-The instructions in paragraph 2 would appear to be of so general a nature that they might well be made a standing order applicable to every officer serving at the station. Paragraphs 3 and 4 contain instructions which appear to be covered by the King's Regulations, and are therefore unnecessary.

37. Page 107, last two lines.-The order here given appears to conflict with the instruction contained in the last line on page 75.

38. Page 117, paragraph 11.-This order conflicts with that given on page 105, paragraph 6, by which the section staff officers are to be placed at the disposal of the section commanders at the "precautionary" stage.

Chapter VI.-Civil Administration and Harbour Traffic Regulations.

39. Page 120, top.-For reasons similar to those given with reference to another proclamation in paragraph 37 of their Remarks No. 373 R on the 1904 Defence Scheme, the Colonial Defence Committee recommend the following addition to the preamble of this proclamation :---

"Whereas a state of war exists between His Majesty and

And whereas cases may arise in which the ordinary law may be found to make inadequate provision for the due conduct of hostilities against the enemy and for the security of this, our Colony of Hong Kong;

"And whereas by Clause I of an Order

40. Page 128 (ii), paragraph 3.-It is advisable that the examination steamers should be definitely selected beforehand. Although there must be a very large number of suitable vessels at Hong Kong, time might be wasted in seeking for vessels having exactly the right qualities, and to which the semaphores and signal guns can be quickly fitted.

41. Page 130, paragraph 6.-The Colonial Defence Committee observe that the Traffic Regulations do not give full effect to the recommendations contained in paragraph 6 of their Remarks No. 373 R on the 1904 Defence Scheme. It was then proposed to close the central channel of the western entrance between Stonecutters Island and Green Island, the exact method being decided by experiment. The regulations contained in the Defence Scheme make no mention of the closing of this channel, although in paragraph 18 on page 4 of the Scheme it is stated that entrance through this channel would be prohibited.

It is recommended that the existing regulations should be elaborated after careful experiment on the lines suggested in the paragraph referred to, pending the receipt of fresh general instructions on the whole subject of the examination service, which is now under the consideration of the Admiralty and War Office.

27 ark Ahmiy accept respon- sibility for reg. g traffic as in case "folha Naval bases.

Attention is also called to the note in the same paragraph of Colonial Defence Committee Remarks No. 373 R, that the bearings of examination lines to degrees are

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