Beyond this one gap in its continuous fencing of houses the Queen’s Road runs on past the Naval Dockyard—where Commodore Sir Francis Powell, K.C.M.G., had such heavy labour all through the troublous time in China—and the Provost Prison on the seaward side, and the barracks of the British troops and the arsenal on the other. Then the military hospital and the ordnance yards, crowded with guns, from the twelve‐inch naval monsters to the stubby howitzers or long six‐inch on field‐carriages. Then more barracks. Then it runs on again into Chinese shops, their upper stories used as boarding‐houses for Celestials; and, turning down to the harbour and following the shore line, it is bordered with coal‐yards, godowns, and warehouses. Near this end are the two open spaces of the island, where the hills, retreating from the sea, have left valleys which the sport‐loving Britisher has seized upon for recreation grounds. The first and larger one, known as the Happy Valley, is a lovely spot. All around the tree‐clad hills ring it in, rising precipitously from its level stretch on which is a racecourse, its centre portion being devoted to other games. A fine grand stand is flanked by a block of red‐brick buildings, the lower stories of which are used during race meetings as stables for the horses and ponies running. The upper, with open fronts looking out on the course, are used as luncheon rooms, where the regimental messes, the members of the clubs, and large _hongs_ (or merchant firms) and private residents entertain their friends during the meetings. Surely no other racecourse in the world is set in such lovely scenery as this in its arena, surrounded by the mountains that tower above it on every side. And that a _memento mori_ may not be wanting in the midst of gaiety, just behind the grand stand lie the cemeteries—Christian, Mussulman, Hindu, and Parsee. Up the sides of the steep hills the white crosses and tombstones gleam amongst the dark foliage of the trees; and the spirits of the dead can look down from their graves upon the scene of former pleasures. A little farther on is another and smaller valley used as a polo ground. Previous to the advent of the Indian troops in 1900 the game was played here almost exclusively on Chinese ponies. But the Arabs used by the officers of the 22nd Bombay Infantry, by that excellent sportsman, H. H. Major, the Maharajah of Bikanir, and other members of the China expeditionary force, so completely outclassed the diminutive Chinese ponies that a revolution was caused in the class of animals required for the game. Small Walers from Australia and Arabs from India have been freely introduced, much to the benefit of polo in Hong Kong.