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His Excellency Sir Richard Graves MacDonnell, Knight, C.B., arrived in Hongkong on the 10th March 1866. On the following day, he took the usual oaths, and assumed the government of the Colony.

In the month of June following, His Excellency visited Macao; and it is reported, that he personally inspected the licensed gambling houses in that place.

MEETING OF THE LEGISLATIVE COUNCIL JULY 25TH. 1866.

Present.

His Excellency the Governor. The Hon. the Acting Chief Justice. The Hon. Acting Colonial Secretary.

The Hon. the Attorney General.

The Hon. the Colonial Treasurer.

The Hon. Mr. Whittall.

The Hon. Mr. Dent.

The Hon. Mr. Gibb.

His Excellency laid the Estimates on the table for the year 1867 and in the course of a long speech, said:

"I have therefore proposed an expenditure of $970,000, including $165,000 for Public Works, though I do not believe you will have really a revenue of more than $852,000. There will thus be a deficit on the year of nearly $120,000; and I apprehend that you will find it expedient to make good that deficiency by increased taxation in some form, and I know of none less objectionable than the Stamp Act."

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