14.

1

11

15. In explanation of this assertion

I may mention that the expense of living is I believe greater in Hongkong than in any other part of the world that the wealth and hospitality of the Mercantile Community are matters of public notoriety — that the Island is the headquarters not only of the Military Forces stationed in China but the Headquarters of the largest Naval station out of England, and the constant resort of Foreign Vessels of war — and that it is further constantly visited by strangers and Foreign Officials of distinction, being the central Station of Six different lines of Steam Communication. All these circumstances combine most to make Hongkong a most expensive Government, and one in which with the present reduced official income it would be impossible for the Governor to maintain that system of hospitable intercourse with those around him which serves to subdue asperities and promote spirit of social good will.

16.

Considered relatively, also, the Salary of the Governor is out of all proportion. The British Envoy who resides at Shanghae receives £8,000 a year and £3,000 for an outfit. The Admiral who resides a large portion of the year at Hongkong receives I believe about £6,000.


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