Enclosure 1.

OP Y.

44491

Royal Engineers' Office,

Rec

Hongkong, 12th

December 1907.

13

sir,

I am desired by the Chairman of the Com-

-mittee of the Hongkong Volunteer Reserve Association to bring

the following before you for favourable consideration of His

Excellency the Governor in Council.

1.

The Association was founded in November,

1904, and, owing to the enthusiasm arüosed by Governor Sir

Matthew Nathan, and by the generosity of many of the leading

inhabitants of Hongkong, its finances were placed on such a

high level that at the end of 1905 there was a balance credit of

$105.00.

2.

During the year 1906, however, the enthu-

-siasm shown at the start to some extent waned and there was a

loss on the year's working of $262.00 which left a deficit of

$157.00 brought over to 1907.

3.

Every effort has been made during 1907 on

the part of the Committee, by the institution of further com-

-petitions for cups presented by members, and by other means,

to arouse and keep alive the keenness necessary to the success-

-ful financial working of the Association, and so far has this

been successful that, although there is a further loss on the

past year's working, the amount has been reduced compared with

1906, notwithstanding the fact that many of the competitions

have been conducted at the Peak which involved a greater cost

for coolie hire, marker's wages, etc.

4. The Committee regret to report that they are

thus faced with a total estimated debit balance of nearly

$300.00 as at 31st. December next.

5.

The duties of Secretary and Treasurer have

heretofore

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