... inspection, &c. This proposal, which I made personally to the Viceroy LI HUNG CHANG when on his way to the North, to the Tsung-li Yamen, and to Sir ROBERT HART, was accepted by all three. It was referred to a Committee in Canton appointed by the Acting Viceroy, and, for some reason that I have not discovered, it was recommended by them that the proposal should be rejected. I hope that the proposal may yet be accepted, as its adoption would be effective in checking the piracy so difficult to cope with on the West River, by affording to Chinese travelling to Canton with valuable property or returning with large sums of money a safe means of transit to their own towns in a British steamer carrying a regular guard.

13. On the 9th of November the Colony was visited by a very severe typhoon, the centre of which passed over the town and harbour. Although due notice had been given of its approach, there was but little precaution taken, as it was assumed that at this season no typhoon would be more violent than an ordinary gale at most. There had been besides several typhoons signalled during the summer, the tracks of which went north or south of Hongkong, so people had become careless. The wind reached typhoon force about 10 o'clock at night, the smaller vessels having taken shelter from the north-easterly gale. At 4 a.m. the centre passed over the harbour and the wind suddenly veered to South-west when the boats, junks and steam-launches found themselves on a lee shore. At 7 o'clock, 10 launches and over 110 junks were sunk, and the harbour was a mass of wreckage. H.M.S. Sandpiper sank at her moorings, and a large dredger just out from England foundered. Over 200 lives were lost in those fatal three hours. As soon as a launch could live, I went along the shores of Kowloon; the whole sea face of which was a mass of wreckage among which the Chinese were already hard at work to effect what salvage they could, and I found that the directors of the Tung Wah Hospital—a charitable Chinese Institution—had at once sent out two steam launches with all the appliances for affording immediate assistance. I mention the fact as I find a widespread idea that the Chinese among themselves are callous and uncharitable, an impression that is entirely opposed to my experience. After the hurricane a public meeting was held and a Committee formed to collect subscriptions. In a few days twenty-eight thousand four hundred and thirty-four dollars were subscribed, of which the Chinese subscribed twenty-one thousand three hundred and sixty-three dollars.

14. In the early part of the year the Colony had subscribed $153,555 to the South-African War fund so that within twelve months the European and Chinese people of the Colony voluntarily contributed to patriotic and charitable purposes the sum of $181,990 over and above the ordinary charities of the Colony, a sum equal to over 5 per cent, of the amount of the public revenue.

I have the honour to be,

Sir,

Your most obedient, humble Servant,

Henry Blake

Governor, &c.

Page 28

28 OCT 1901

COLONIAL SECRETARY'S OFFICE,

HONGKONG, 15th August, 1901.

I have the honour to submit herewith the following Report on the Blue Book for 1900 :--

1.—FINANCES.

(a.) Revenue.—1. During the last five years the revenue of this Colony has shown a steady increase, which has more than counterbalanced the increasing expenditure. In 1893 the balance of revenue over expenditure showed a deficit of $486,144.12. In 1900 not only had this deficit been made good, but, notwithstanding an expenditure exceeding that of 1895 by $655,204.12, the revenue of Hongkong showed a surplus of $574,140.37.

2. The actual revenue for 1900 was $3,235,829.61 exclusive of the amounts derived from Land Sales and the Water Account which amounted to $816,222.92 and $151,034.87 respectively.

(b.) Expenditure.—3. On the other hand the Expenditure amounted to $3,628,447.13, of which a sum of $473,205.89 was expended on Public Works Extraordinary.

(c.) Land Sales.—4. The amount received from Land Sales $816,222.92, showed an excess over the Land Sales in 1899 of $198,398.20.

5. I append tables showing:

(a.) The heads of revenue.

(b.) The heads of expenditure.

(c.) The total revenue and expenditure for the six years—1895-1900.

(d.) The assets and liabilities of the Colony.

(e.) The amount of paper currency in circulation.

(d.) Taxation.—6. Taxation in Hongkong still remains comparatively light, though the cost of living is high owing to the increase in the price of food and the difficulty of obtaining house accommodation at a reasonable figure. There were no important changes in Taxation during the year.

(e.) Public Debt.—7. In 1899 the Sinking Fund, which was created three years previously with a view to gradually paying off the public debt of £341,799 15s. 1d. incurred by Government for the purpose of defraying the cost of certain Public Works, some of them, such as Markets and Waterworks of a remunerative nature, stood at £12,625 18s. 11d., and during the past financial year it rose to £16,485 13s. 2d.

8. With provision so satisfactorily made for the liquidation of the public debt and with a revenue naturally increasing from year to year, the financial stability of the Colony appears to be assured.

II.—TRADE, AGRICULTURE AND INDUSTRIES.

(a.) Imports and Exports.—1. I append tables showing:

(a.) The principal articles of import during the years 1899 and 1900 in vessels of European construction.

(b.) The total tonnage of imports and exports for the last five years.

(c.) The imports and exports of Junks in Foreign and Local Trade during 1899 and 1900.

Sir HENRY A. BLAKE, G.C.M.G.,

Governor, &c.

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