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tons, whilst the value of the transit trade has improved to the extent of 28,933,788 Haikwan taels, or nearly £5,000,000 sterling. No less remarkable is the development of local indus- tries, of which, believing in the policy of independence, I have always been a warm supporter. The establishment of two large kerosene oil depôts, feather-dressing and match factories, soap, coal briquette and rattan works, the extensions of the Docks, the large Sugar Refine- ries, the rope and cement works are standing monuments of that development, whilst the spirit of local enterprise is again evident in the recent formation of a Public Company for the establishment of cotton mills in this Colony.

I am particularly gratified at this latest movement. It is nearly four years since I first made the suggestion to you in this Council and promised my co-operation so far as the ac- quisition of land was concerned. It is nearly two years since I repeated the suggestion and renewed my promise. I trust that whilst you have given practical effect to the former, I have not failed in my fulfilment of the latter.

It remains to mention one other event of great importance to the trade of this Colony, viz., the opening of the West River ports to Foreign trade on the 3rd June last. You will recollect that in my address to you of the 25th November, 1895, I assured you that although for a time, at least, local interests might necessarily be postponed in favour of purely Imperial interests, this question had by no means been lost sight of.

The result has proved that I was justified in making that statement, and it affords me much pleasure to have witnessed before my departure the accomplishment of this object. When communication has been satisfactorily established between Hongkong and the West River ports, this Colony will, doubtless, share to the fullest extent in the harvest to be reaped from these additional fields for commercial enterprise.

My relations with the Chinese community of this Colony have always been of the most cordial nature. I have had no reason to change my earliest-formed impression of their industrious, peaceful, and law-abiding qualities. On the other hand, I have had every reason to adhere to my original promise that they would find in me not only a Governor but also a friend. And if on one or two occasions I have had to disguise my good intentions under the cloak of official authority, I have on such occasions endeavoured to combine firmness with consideration for their feelings and national customs. My object has always been to promote their welfare and secure their best interests.

In proof of the sincerity of these professions, if any such proof is required, I would refer to the concessions granted during the Plague Epidemic of 1894 under circumstances which involved a very large degree of responsibility. I would also mention the support accorded by the Government to the Pó Léung Kuk, which has enabled that charitable Society to erect a new home, which I opened in person, and to continue its beneficial work under more favourable circumstances. Great improvements also have been effected in the administration and sanitary condition of the Tung Wa Hospital, the benefits of which are already evident and are daily becoming more appreciated by the native community.

I have already referred to the modification of the Light and Pass Regulations which prove to have been an unnecessary restriction. And if any further illustration is needed of my regard for the interests of the Chinese, I would mention the additional representation on this Council recently accorded to them at my suggestion.

And here I desire to express my indebtedness to the Registrar General, whose know- ledge of the Chinese characteristics and of the language, and whose advice in all matters relating to their interests, has always been of the greatest assistance to me.

I cannot conclude my remarks without reference to that unique occasion in the annals of our national history which has recently been celebrated throughout the vast British Empire. I mean, of course, the completion of the sixtieth year of Her Majesty's beneficent reign.

It is impossible to appreciate adequately or relatively the enthusiastic expressions of loyalty, respect, and devotion towards our beloved Queen-Empress which that commemo- ration called forth from countless millions of British subjects throughout the world; but I

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