Having frequently in part commented on the prosperity of the Colony which the accompanying volume shows to be continued and increased during the last few years, I have but little to remark on now.

3. Certain points connected with the scheme concerning the Waterworks, on which they had been misled by interested individuals, have been righted.

4. A proposition to introduce gas into Hongkong has been entertained by the Government and will in all likelihood be carried out before a year is over. Opposition was made on private behalf, and I was glad to take the opportunity to set the Community right on certain points.

The new waterworks are nearly ready, but they will considerably exceed in cost the Original Estimate furnished by M. Rawling.

6. The Board of Education has not shown much result as yet, but I hope and trust that M. Stewart's zeal will meet eventually with the success it deserves.

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