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by which it is attempted to give effect to those principles, and as almost all the details in the enclosed statement of the Colony's Account with the Special Fund carry with them obvious explanation, I do not detain Your Lordship by entering into each particular.

7. I nevertheless think it desirable to allude to one item, (the meaning) of which is left apparent under Estimated Expenditure of 1869 (Page 2) viz: the payment of $10,000 in aid of the Harbor Master's Establishment. This is intended to reimburse the Colony for loss of Revenue by the abolition of some fees and the diminution of others which were previously levied under the Harbor and Coasts Ordinance of 1866. These fees by the Chinese were entirely payable, doubtless they caused hardship, but the Committee for the purpose of searching, registering, and visiting 30,000 Junk vessels in the course of the year, to prevent Piracy and crime, had rendered the Harbor Establishment far more costly than its mere duties would have justified.

8. In any case, however, these fees constituted part of the general Revenue of the Colony, and without help from The Special Fund it would scarcely have found

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