until the end of November and consequently have not had an opportunity of personally watching the progress of events during the year in question.

3. I base my remarks, therefore, on the Returns themselves, my own lengthened experience of Hongkong, such information as I have obtained in casual conversations with Mr. Bridges, who during my absence in England, discharged so efficiently the duties of my Department.

4. It will be seen that the Revenue for 1858 is £62,476.9.8¼, being a nett increase of £3,634.7.11¼ over that for the previous year, while the expenditure in 1858 has been £62,979.8.1¾ or £2,518.11.5¾ less than in 1857. This result is so far satisfactory on both sides of the account.

5. Of the Public Works I am happy to say that the Orders of the Secretary of State are being now carried out, that Tenders have been invited for extending the Gaol, and that at the end of the current month a new and commodious Civil Hospital will be provided.

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