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HONG KONG LEGISLATIVE COUNCIL.

the lower-grade Chinese tobacco cannot stand the competition of the higher grade tobacco, resulting in smuggling of the former on an extensive scale. The effect of this could be a loss of legitimate trade in the lower-grade tobacco, with the loss of revenue to the Government.

In order to counteract this adverse factor we suggest that the Superintendent of Imports and Exports may make a thorough investigation into the matter in co-operation with the Chinese General Chamber of Commerce who would, I am sure, be found only too willing to assist in every way they could.

Turning now to the Estimates of Expenditure, we express grati- fication at the provision of $50,000 for a Harbour Dispensary Launch. The boon to the large boat-population must be inestimable, particularly in the treatment of communicable diseases. It is a matter of common knowledge that the boat people are either indifferent to medical treatment, or unable to leave their craft and go ashore for treatment, in cases in which immediate medical attention is an urgent necessity. The floating population come into the scheme of things to a far greater extent than can be imagined from the angle of public health; and since the mountain cannnot go to Mahomet, Mahomet must go to the mountain. The new scheme is therefore one that must have the support of all classes of the community.

The two items "Subsidies to Schools in the New Territories" and "Subsidies to the Elementary Vernacular Schools in Hong Kong" in the Education Estimates show a decrease of $5,000 each; and no explanation is given for the reduction. In the absence of any explanation we are unable to offer any intelligent comment on the matter, but speaking generally we consider that the subsidies hither- to provided are by no means too large.

We also note that on page 102 of the Estimates the grant in aid of the University School of Chinese is reduced from $46,000 to $40,000; but, again, no explanation is given. It would be in- teresting to know what has happened since the 1929 Estimates were framed to account for this reduction.

The honourable senior unofficial member has given the reasons for the unofficials' attitude in opposing the creation of a Royal Naval Volunteer Reserve. These reasons are that the Reserve may, to a certain extent, detrimentally affect the Volunteer Defence Corps; that the Reserve is unnecessary here; and that naval work should be left to His Majesty's Navy.

In addition to these arguments, the Chinese members also consider it impolitic to embark on further military or naval ex- penditure, albeit such is specifically for defence purposes.

At a time when the thoughts of all are concentrating on Universal Peace,

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