-16-

59 lives, and damage was done to 77 Government buildings with a loss of one life. The river steamer Ying King foundered with a loss of 424 lives, including those of the Master and 3 European passengers. Inside and outside the barbour limits 17 European and 123 native craft were sunk, many more being wrecked or damaged. The loss of Government property alone was estimated at $100,000. The storm swept on to Canton where great destruction of river craft and much loss of life occurred,

Under instructions from Your Lordship a bill was introduced into the Legislative Council to provide for the Transfer to the Government of Hongkong of the Widows' and Orphans' Pension Fund and of the Management and Control of the Pensions of Widow and Orphans. The bill was passed on the 30th July and the fand amounting to a sum of $371,321 was transferred to the general revenue of the Colony, out of which the pensions in question will in future be paid.

A riot broke out in the town of Victoria on the 1st and 2nd of November in connection with a boycott of Japanese goods by the Cantonese. This boycott was due to the feel- ing excited in China by the Talsu Maru affair, and was actively organized by the "National Disgrace Society" at Canton. It soon spread to Hongkong, where the Government from the first took active steps to combat it with the result that by the anturan several Chinese merchants in the Colony had again began to trade in Japanese goods. This gradual failure of the boycott movement in Hongkong dissatisfied the more violent agitators in Canton, who, thereupon, made this Colony the scene of an organized riot, which hind for its object the destruction of the shops and goods of auch Chinese merchiants as had abandoned the anti-Japanke boycott. The affair was arranged with such secrecy and skill that the Police of the Colony were completely taken by suprise, and for the purpose of restoring law and order it was necessary to call upon the Military Authorities for assistance. A proclamation was forthwith issued declaring the Colony subject to the provisions of the Peace Preservation Ordinance and with the help of the troops order was restored by the evening of the 2nd November. After that date there was no further outbreak and drastic steps were taken to deal with the instigators of the outrage. In no instance was a Japanese shop or a Japanese subject attacked.

I have the honour to be,

My Lord,

Your Lordship's most obedient,

humble servant,

Governor, $e.

#612.2

Sa-tsinng

HONG KONG,

KOWLOON AND ADJACENT TERRITORIES.

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Shak KWAN

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John Bariatre & Co

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