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The Land Revenue of the New Territory is estimated at $30,000. It is expected that this sum will be realized, but, as I have already explained, the true Revenue of that portion of the Colony cannot be hoped for until the survey has been completed and the land claims decided. As to the details of Expenditure, every department shows an increase on its estab- lishment. This is due to the increase in the pay of subordinate officers of the service as recommended by the Committee appointed last year, and to addition to the staff of certain departments. There seems to be a general impression that certain departments-the Public Works, the Post Office, the Medical Department, and the Sanitary Department-are being unduly curtailed as regards funds, or personnel, or both. It may therefore be interesting to contrast the Annual Expenditure on these departments in 1896, in 1900, and in present Estimates.

Public Works.

1896, .... .$ 85,694.10

1900,

1901.

123,306.00

138,701.00

Post Office. $188,201.17

269,480.00

285,294.00

Medical.

$109,763.19

130,134.00 146,666.00

Sanitary. $ 94,818.45 152,993.00 190,083.00

As regards the Public Works Department, the Acting Director of Public Works reports that the staff is not sufficiently strong to carry out the various works and duties entrusted to it.

Provision has therefore been made in the Estimates for two additional Engineers. It is my intention to appoint a Commission to report upon the staff and working of the Public Works Department, which is the chief spending department of the Colony.

With respect to the Post Office, every effort is being made to render that institution worthy of the Colony. It must be evident that here there are exceptional difficulties to con- tend against, but it is hoped that the comparatively few complaints received of late may be an indication that matters are working more smoothly. The Postmaster General, Commander Hastings, has just returned from leave, during which time he has devoted himself to inquiry into the working of the department in England, and he will. I am certain, be ably seconded by Mr. Lewis, who has discharged the duties of Acting Postmaster General very satisfac- torily during the absence of Commander Hastings.

I have also considered the state of the Medical Departinent and have decided to increase the staff at once by making provision in the Estimates for two Assistant Surgeons, one of whom will be employed as Second Health Officer of the Port in accordance with the recom- mendation of the Chamber of Commerce. Should it be found that any further addition to the Sanitary staff is necessary, I shall appeal to you with confidence for the necessary funds. Apart from the staff, it is not improbable that very large sums will have to be expended in the near future in the Sanitary improvement of the City-sums that will absorb our balance and probably involve increased taxation. Happily the taxation of the Colony is compara- tively light, and in a matter of such moment I feel that I can depend upon you to supply the necessary funds. The estimate for Public Works Extraordinary amounts to the large sum of $802,316.68; of this sum $146,000 is for Waterworks and $82,000 for extension of Markets, while $79,000 is for the improved accommodation for the Police, which will tend to improve the comfort and efficiency of the Force.

BILLS.

The following Bills will be submitted to you :-

A Bill entitled An Ordinance to apply a sum not exceeding Three million Seven hundred and Thirty-nine thousand Three hundred and Twelve Dollars and Twenty-six Cents to the Public Service of the Year 1902.

A Bill entitled An Ordinance to amend An Ordinance entitled The Weights and

Measures Ordinance, 1885, (No. 8 of 1885).

A Bill entitled An Ordinance to amend The New Territories Land Court Ordinance,

1900, (No. 18 of 1900).

A Bill entitled An Ordinance to amend the Public Health Ordinance, 1901, (No.

13 of 1901).

A Bill entitled An Ordinance relating to Copywright in Works of the Fine Arts, and for repressing the Commission of Fraud in the Production and Sale of such Works.

A Bill entitled An Ordinance to amend Ordinance 15 of 1887, and to remove any

doubts as to the validity of any matters done under it.

From my experience I know that these and all other measures laid before you will receive conscientious and careful consideration.

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