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The Colony commenced to forward Parcels ciû Shanghai, Dalay and the Trans-Siberian railway ou 1st September. The following Agreements were entered into and came into operation during the year, riz. :-
Direct Exchange of Money Orders with Indo-China on 1st October; Direct Exchange of Parcels with New Zealand on 1st August; Parcel Post Agreements with the Straits Settlements on 1st August, and with the Philippine Islands (revised) on 7th October.
As from the last ring of 1910 the Hongkong Government was relieved by the Imperial Authorities of the charge of the Postal Agencies in China.
XL-MILITARY EXPENDITURE.
(4.) Coloxial CONTRIBUTION.
The Colony contributed $1,372.486 (being the statutory contri- bution of 20% of the Revenue) towards the cost of the maintenance of the Regular Forces in the Colony including Barrack Services and Delence Works,
(b) VOLUNTEER CORPS.
The expenditure on the Volunteers, which is entirely borne by the Colony, was 834,744 compared with $38,303 in 1909.
XIL-GENERAL OBSERVATIONS.
The Assessment made for the year 1910-1911 (1st July to 30th June) shews an increase in the Ratable Value of the whole Colony of 3'17 per cent. In the City of Victoria, the Hill District, Shaukiwan, Saiwanho, Quarry Bay, Hunghom, Hoku, Mongkoktaui, New Kowloon and Kowloon Villages there is an increase ranging from 017 per cent. to 112:18 per cent, but in the Hongkong Villages, Kowloon Point and Yaumati à decrease ranging from 043 per cent. In the Shaukiwan, Saiwanho, and to 688 per cent is shown. Quarry Bay Districts there is an increase of $131,911 or 112:18 per
cenk
The average rate of exchange (demand on London) which had been 1-90601 to the dollar for 1909 rose to 196021 for 1910.
The position with regard to subsidiary coins remained unsatis- factory, and during 1910 the Government withdrew from circulation silver subsidiary coin amounting to the face value of $314,300 and copper to the face value of $114,800. These coins were shipped to England where they were melted down and sold as bullion for The loas to £28,787 5s. Md, and £4,205 0s. Od. respectively. revere by this transaction amounted to $119,294.37. The discount during the year on Hongkong subsidiary coin varied between 4% and 7%, and on Chinese subsidiary coin 44% and 8%. Hongkong copper cents were from 105 to 120 per $1, and Chinese copper cents from 112 to 123 per $1. Negotiations continued without suc- ress between this Government and the Chinese Authorities with a view to decreasing the excess of Chinese subsidiary coin.
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In pursuance of the policy of H.M.'s Government all opium divans in the Colony and the New Territories were closed on the 1st March, 1910, and on that date all the provisions of the Ordinance to amend and consolidate the laws relating to Opium and its Compounds (No. 23 of 1009) came into force. The general scope of that Ordinance was described in Sir F. H. May's roport on the Blue Book for 1909 and I need only add here that during last year two further Ordinances (No. 11 and No. 33) were passed with a view to making its pro- visions more effective, while the Pharmacy Amendment Ordinance (No. 9 of 1910) increased the powers possessed by this Governinont in controlling poisons including morphine and cocaine.
The export of morphine and compounds of opium from Hong- kong to Siam, the Netherlands-India, French Indo-China, Japan, the United States of America, and the Philippine Islands is not permitted except on production of an official certificate from the country con- cerned that such morphine or compounds of opium aro required for medical purposes or by the Government of the country. These measures took effect on the 1st April, 1910.
H.M.'s Government made the Colony a grant of £9,000 for the year 1910 on account of a loss of $225,860 incurred during that year in respect of opium revenue.
I proceeded to England on leave on May 1st returning on November 1st. During my absence the Government was admin- istered by Sir H, May, Colonial Secretary,
The Right Honourable
I have the honour to be,
Sir,
LEWIS HARCOURT, M.P,
M.P,
A
Your Inost obedient, humble servant,
Hodugarez
Governor.
His Majesty's Principal Secretary of State for the Colonies,
His Majegy
&c.,
&c.
&c.,
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