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4. The uncertain situation in Canton caused anxiety in the Colony early in the year. For a time there was some possibility of a recurrence of the strike and boycott of 1925, but by the proscription of the Seamen's Union and by the prevention of seditious meetings this danger was averted. A more settled Government in Canton led to a gradual improvement in its relations with this Colony. There was however a continual influx of refugees and other persons into the Colony, and the disbanding in Canton of the Hong Kong strikers caused many bad characters to make their way to Hong Kong, A series of armed robberies occurred during the autumn, culminating in December in a street battle between the police and a gang of armed robbers, in which two Chinese constables were shot and three robbers either killed or wounded.
5. On August 20th, the Colony was visited by a severe typhoon, which lasted for the unusually long period of 12 hours. Much damage was caused on shore, especially in the Peak district, where one block of flats collapsed and a number of flats and houses were severely damaged. The P. & O. steamer "Rawalpindi" dragged her moorings, and for a time was in danger of being dashed on the Praya Wall. This catastrophe was happily averted.
6. The honours conferred on residents of Hong Kong by H.M. the King during the year included the appointment of Sir Joseph Kemp as Knight Bachelor and of Mr. W. T. Southorn and Dr. R. H. Kotewall as Campanions of the Order of St. Michael and St. George. Among the visitors to the Colony during the year mention should be made of the Bishop of London. who was present at the New Year and whose addresses were received with much enthusiasm by the local religious community. In September the two American aviators Messrs. Brock and Schee and their aeroplane "Pride of Detroit" visited Hong Kong and made a short stay on their flight round the world.
II. Finance.
The total revenue of the year amounted to $21,844,536 which sum exceeded the estimate by $337,139, and the revenue for 1926 by $212,954. This increase was chiefly under the headings Licences and Internal Revenue and it more than set off the deficit in stamp and liquor duties and in the revenue from land sales. A noteworthy item was the increase of $107,184 in the passenger service (foreign line) of the Kowloon-Canton Railway due to the reopening of through traffic with Canton. This increase more than counterbalances the decrease in passenger receipts on the home line. Two unusual items contributed to the excess of revenue over expenditure. The first was the transfer of accumulated interest to the amount of $146,450 on the money deposited in London towards the cost of the Singapore base. The second was the transfer to revenue of the surplus of the local War Loan Sinking Fund amounting to $158,134 following on the repayment of the loan at the end of the year.
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2. The expenditure for the year amounted to $20,845,065 which was less than estimated by $1,469,637 and less than expenditure in 1926 by $2,679,651. The principal item on which savings were effected was Public Works Extraordinary. Owing to the general policy of retrenchment and to lapsing salaries in the Public Works Depart- ment it was found possible to effect a saving under these two headings, of over $900,000, A very substantial saving was effected by the repayment of the Local War Loan and the consequent saving of interest and Sinking Fund charges.
3. The following is a statement of Revenue and Expenditure for the last five years:-
Year.
Revenue.
Expenditure.
1923
$24,783,673
$21,571,905
1924
24,209,640
26,726,428
1925
23,244,365
28,266,817
1926
21,131,582
23,524,716
21,344,536
20,845,065
1927
4. Public Debt. The local 6% War Loan of $3,000,000, due for repayment in November, 1928, was fully repaid during the year and the surplus in the Sinking Fund of $158,134 was transferred to revenue. In November the new 6% Public Works Loan at par was issued. $3,000,000 worth of bonds were allotted, but the applications actually received from the public amounted to nearly four times that The inscribed Stock Loans of 1893 and 1906 due for repayment in 1943 amounted to £1,485,778 and the Sinking Fund at the end of the year was £587,205.
sum.
5. The Trade Loan.-This loan which was issued in 1926 to assist local merchants and others during the exceptional difficulties follow- ing on the strike and boycott was allocated to the extent of $15,624,588 representing a total of 278 loans. All loans were limited to a period of two years and although many of them were due for repayment at the end of last year it was considered that the financial situation had not sufficiently improved to justify their being called in. The position on 31st December, 1927 was that 164 loans, repre- senting a total of $8,102,895, or rather more than half the total, were outstanding.