:

The position with regard to subsidiary coins still remained unsatisfactory. The discount during the year on Hongkong silver aubsidiary coin varied between 1% on 50 cent pieces and 71% on 10 cent pieces, that on Hongkong copper cents varied from 9 to

Revenue came 12%. The loss on such coin collecter as $49,434.96.

to

His Majesty's Government made the Colony a grant of £12,000 for the year 1911-12 on account of an estimated loss of $225,860 incurred during that year in respect of opium revenue.

By the agreement of the 8th May, 1911 between Great Britain and China, no Indian opium can be imported into China, nuless accompanied by a certificate issued by the Indian Government that such opium has been exported from India for consumption in China. To prevent attempts to sinuggle nou-certificated Indian opium from Hongkong into China, an Ordinance was passed on 1st September, 1911, prohibiting the import of non-certificated Indian opium into Hongkong except for the use of the Hongkong Opium Farmer.

In August, 1911, the port of Macao was added to the list of places to which the export of morphine and compounds of opium is not perinitted except on production of an official certificate from the country concerned that such import is for legitimate purposes. The import of morphine and compounds of opium for export practically oedsed towards the end of the year, and considerable quantities lying in Hongkong were shipped back to London,

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The 22nd Jane, being the day fixed for the Coronation of His Majesty King George V, was observed as a holiday and the whole of the population joined in celebrating the occasion. A review of the troops was held, at which about 3,500 soldiers and sailors paraded. A short service was held by the Chaplain and cheers were raised for fis Majesty. Subsequently the troops marched through the prin- cipal streets of the City. The European, Chinese and Indian Com- munities all combined to show their loyalty and devotion. Services were held in the Protestant and Roman Catholic Cathedrals and other churches. The Parsee and Sikh Communities also held special services. The children of the Colony were entertained and were addressed by Sir D. Lugard, and sports of all kinds were arranged for them The whole of the Colony was illuminated for three nights, all the men-of-war in harbour of whatever nationality -combining in the display. A reception and fate was held at Government House in the evening, at which practically the whole of the European population and minny Chinese and Indians attended.

In July, 1910, the audit of the Colony's Expenditure was trans- ferred from the Director of Colonial Audit and has since been carried out by the Local Auditor. The new arrangement has proved very satisfactory and the additional staff required has been very small, viz., one fourth grade and our fifth grade clerk.

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In December, 1910, Mr. R. E. Stubbs of the Colonial Office visited this Colony with a view to ascertaining the conditions of service in Hongkong; and, as result of his inquiries, it was decided that that the salaries of Care and some other officers should be increased by the grant of a non-prazonable duty allowance". This allowance is only payable to an ofthehen he is actually performing the duties of a post to which duty-pay is assigned.

The preparation of a revised edition of the Ordinances of Hong- kong to the end of the year 1911 was considered necessary, and the revision was entrusted to the Chief Justice, Sir F. T. Piggott, who commenced work in March 1911. At the close of the your the revision work was still in progress.

On the 7th September, 1911, a Board of Chinese Vernacular Primary Education was constituted by the Governor-in-Council with the following duties :-

(1.) to promote efficient Chinese Vernacular Education in

the Colony:

(2) to collect funds to supplement a Government subsidy

made to the Board.

The Board consists of the Registrar General and the Director of Education (ex-officio) and of five Chinese gentlemen nominated by the Governor. The Government subsidy to the Board for the year 1912 will be $4,100.00, which the Board intend to distributo after a survey of the general situation and after inspection in the mouth of December of schools selected from the list of applicants for assist- ance. The Board is giving attention in the first instance to boys' schools in the City of Victoria and other parts of the old Colony. Its operations do not extend to the New Territories. Girls' schools are, also, for the present not placed under the supervision of the Board.

The Grant Code was amended in September in certain par- ticulars. The amendments, which took effect on the 1st January, 1912, reduced the rates of capitation grants for such Vernacular Schools as are without immediate English supervision. The practice of giving grants in aid of rent to vernacular boys' schools occupying leased premises is being discontinued. The reason for this restriction of expenditure is that the grant hitherto offered to vernacular schools was too high for the standard of work attained.

On 4th October the Chinese Section of the Kowloon-Canton Railway was opened for through traffic, thus completing direct com- munication by rail between Kowloon and Canton.

The revolutionary movement in Chim was reflected in the Colony on 6th November by an ebullition among the Chinese com- munity, which for some days was in a state of great excitement. A proclamation under the Peace Preservation Ordinance 1886, as amend- ed by Ordinance No. 52 of 1911, was issued on 29th November and was will in force at the end of the year. It was also fenic mtessary"

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