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LEGISLATIVE

COUNCIL.

A meeting of the Legislative Council was held at the Chamber October 22nd.

The Budget.

At the conclusion of the opening routine business, the COLONIAL SECRETARY moved the second reading of the Bill intituled An Ordinance to apply a sum not exceed ing $18,767,777 to the Public Service of the year 1926.

The COLONIAL TREASURER seconded.

HON. MR. P. H. HOLYOAK. Hon. Mr. P. H. HOLYOAK: Your Excel- lency, it will perhaps be useful in discuss- ing the Draft Estimates of Revenue and Expenditure for 1926, if in the first place I deal with Your Excellency's speech introducing the Budget before discussing in detail such points as appear to us to call for further explanation or special reference. To commence with, we should like to congratulate you, Sir, on the ex- tremely able and comprehensive survey of the past year and the present situa- tion, as well as upon the statesmanlike budgetting which we have learned from successive budgets, to expect from you. Whilst sympathising with the difficulties of attempting any accurate forecast for the coming year, it has naturally been a relief to hear that "for the present, at any rate, the right course is to reduce expenditure rather than to increase in- come" and that, therefore, you do not think it necessary to provide for addi- tional direct taxation for the present." We were glad to hear from Your Excel lency that the Colony's revenue is already showing signs of improvement.

We most fully endorse Your Excel· lency's statement that " you cannot be- lieve that the intelligent people of Kwang- tung-a race which has been famous for centuries for commercial ability and prac- tical sense can be content much longer to put up with the oppression of a regime imposed from outside and supported by mercenaries from other provinces," and we too, believe that the traditional sound common sense of the people of Kwangtung, as well aB the old-time, deeply sincere friendship between the Cantonese officials and people and the British Government and its citizens resid- ing in Hongkong and China must before long reassert themselves, and conditionя become once more normal for them and us. It is perhaps fitting at this stage to express the fervent hope that the Con- ferences about to commence in Peking will materially assist in reinstating normal relations with China.

BUDGET DETAILS.

Turning now to the details of the Bud get, we note for the first time that all junior clerks now come under the definite beading of "Junior Clerical Service." Whilst appreciating the explanation that this has been done for the sake of economy in time and labour, we are not fully satisfied that it is not preferable to debit these salaries to the various departments concerned, that we may arrive at definite knowledge of the cost of running each department.

TRADE STATISTICS.

We note that a substantial saving, estimated at $44,000, is to be made by the abandonment of the Statistical De- partment of the Imports & Exports Office, and I have been asked to make representations that this would be a very retrogressive step and that it should be avoided if at all possible. Personally speaking, I cannot imagine why this particular department has proved expensive to run hitherto, and possibly upon reconsidering the matter, it may be found wat it can still be carried on though at a far lower cost.

POLICE FORCE.

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We most cordially endorse your high appreciation of the zealous services of the Police Force during the trying period through which we have passed and would associate with them, both the Police Reserve and the Volunteers, not forget- ting the wonderful voluntary service ren- dered by a very large section of the entire community, Chinese and Foreign alike, to maintain the essential services and normal life of the Colony. Indeed, thanks to the united efforts of all, so normal have things been kept to the casual eye

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