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As Hong Kong is geographically a part of China, the population is entirely Chinese, with a small percentage of Europeans, Americans and Asiatics other than Chinese. There are not, and cannot be, any accurate statistics of the population of Hong Kong, owing to the fact that there is a constant stream of people travelling be- tween Hong Kong and the Chinese mainland, numbering thousands daily. At times of civil unrest in Canton and the Kwangtung province, large numbers of Chinese take up temporary residence in Hong Kong for the purpose of ensuring protection for their persons and property. It is estimated that the population numbers almost 1,000,000 whereof about 550,000 live in the City of Victoria and about 270,000 in the town of Kowloon, while over 100,000 live on boats in or about the harbour and the rest in the villages.
The administration of the Colony is in the hands of a Governor appointed by the Imperial Government. He is aided by an Executive Council composed of the General Officer commanding the troops, the Colonial Secretary, the Attorney General, the Secretary for Chinese Affairs, the Treasurer, the Director of Public Works and three unofficial members. There is also a Legislative Council presided over by the Governor and composed of the same officials, members of the Executive Council, plus the Captain Superintendent of Police, the Harbour Master and the Directors of Medical and Sanitary Services. There are eight unofficial members of the Legislative Council, six of whom, including three Chinese, are nominated by the Crown. Of the other two members, one is nominated by the Chamber of Commerce and one by the Justices of the Peace.
Hong Kong, at the time of its coming into the possession of Great Britain, was practically an uninhabited barren territory. It is largely mountainous, with a few valleys in between. There is no agriculture worth mentioning. The main industries are shipping, trade, manufacture and fishing.
In spite of the insignificant size of its territory, Hong Kong is of very great com- mercial importance, due to its geographical position at the gates of the very rich South China and to the security it offers to trade and industry. Most of the trade to and from South China passes through Hong Kong. It has also a very important position as a part of transhipment between various countries in the Far East, from Japan in the north to Malaya, the Netherlands Indies, and even British India in the south, and also to and from the Philippine Islands and Australia. The value of the total trade of Hong Kong now stands at about 150 million pounds sterling annually, of which 128,000,000 consists of trade with other countries in Asia, the principal being China, French Indo-China, Japan, the Netherland Indies and Siam. The largest non-Asiatic countries that trade with Hong Kong are Great Britain, the United States and Germany.
Practically all trade with Hong Kong is sea-borne, and in consequence, the amount of shipping in the port is very large. In 1928, the total shipping entering and clearing from the Colony amounted to 300,316 vessels, with a total tonnage of 44,883,765 tons, the majority of which (about 37,640,000 tons) was engaged in for- eign trade. The number of native junks, launches, etc., occupied in local trade runs to very high figures. Hong Kong is also an important port of call for the shipping on the Chinese rivers and on the coast.
The fact that Hong Kong is a free port has also fostered a considerable industry in the Colony. The most important branches of the manufacturing industry are sugar refining, cement manufacture, ginger preserving, cotton spinning and weaving, and ship-building. In addition, there are innumerable small Chinese workshops.
Surrounded as it is by the sea, most of Hong Kong's communications are by water. Excellent motor-roads exist on the island of Hong Kong as well as in the Kowloon peninsula. Hong Kong is connected with Canton by a railway, and by a regular steamship service.