The staff as increased by these recommendations will, in the opinion of the Governor, be not more than sufficient for the work which will, under any circumstances, be required in the coming years. A still further, though temporary, addition to the strength of the Department will be required, if there should be an immediate commencement of all the Public Works to which reference is made below.

Police.

The increase of $10,684 in the votes for this Department is principally to supply an addition to the numbers of the Force, required to meet the growth of the population. Gaols.

The additions to salaries in this Department are chiefly for the purpose of bringing about a very necessary improvement in the staff, the remuneration hitherto given having rarely proved sufficient to be a permanent attraction to good Officers. The increase to the salary of the Superintendent, the Governor has felt compelled to recommend for reasons which will be explained in Finance Committee.

EXTRAORDINARY EXPENDITURE.

With Ordinary Revenue estimated at $1,737,718, and Ordinary Expenditure at $1,394,665, there is thus a balance of $343,053. Certain recommendations which the Governor intends to make to the Secretary of State, but which cannot be introduced into the Estimates without previous sanction, may possibly reduce this balance by a sum certainly not exceeding $60,000 leaving $283,053. Adding to this $150,000 which has been stated as likely under any circumstances to be realised from land-premiums, and $445,000 the probable balance in the Treasury at the end of the present year, there results a total of $878,053 available for the cost of Public Works and to meet unforeseen contingencies.

The Extraordinary Public Works specified in the List accompanying the Estimates are all of them urgently needed. The necessity for their being immediately undertaken no doubt differs in degree; but with the funds available, none of them, in the opinion of the Governor, can be commenced too soon. It will be seen that the utmost sum which is estimated as likely to be capable of being profitably expended on them during the coming year is $637,626. This amount can be readily afforded. For apart from the steady advance which is being shown in all the important items of Revenue, there will almost certainly be in 1890 a still larger surplus of Ordinary Revenue than in 1889, owing to the fact that the New Opium contract will be in force during the whole twelve, instead of only nine, months; while if, as there is reason to hope, the proposed works in connexion with the junction of the East and West Prayas should be, before that time, in progress, there would probably be largely increased receipts from Land-premiums, owing to the impetus which would thereby be given to building in the Eastern district of Victoria.

As regards most of these works, the mere mention of them by name is sufficient to suggest their necessity to residents of Hongkong. One of them, however, the Separate System of Drainage which happens to be the most costly, may possibly require further explanation.

The report of Mr. COOPER, the Sanitary Surveyor, on this subject fully supported as it is by the valuable opinion and judgment of the Surveyor General, has however produced in the Governor as complete a conviction of the necessity of the work as can be justly entertained by one who is not an expert; and he is of opinion that if the view of our local Engineers should be approved by the eminent professional authorities in England, to whom the question will be referred, this Government would assume a very grave responsibility if it failed to make the earliest practicable commencement of the works proposed.

Besides the Public Works appearing on the List there are (i) some equally required which cannot be commenced at once, such as a New Harbour Office, which requires to be placed on the proposed Reclamation, and New Supreme Court Buildings, Post Office, and Registrar General's Office, all of which it is proposed to include with the other Government Offices in one large building to be erected on the site of the present North Barracks, and on the reclamation in front of it (the whole cost of these however being likely to be recouped by the sale of the sites of the present buildings); and (ii) others which, it may be hoped, will be commenced in the coming year; viz.:-

Extension of the Praya in front of the Admiralty and War Office

Reserves roughly estimated to cost,

Government portion of Reclamation in front of the Town of Victoria,...,363,000 Reclamations in Kowloon, (first instalment),

Total,

$400,000

,, 30,000

$793,000

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