About 3,500 feet of heading was driven in Beacon Hill Tunnel making a total of 5,600 feet out of 7,212 feet and a total of 2,700 feet of tunnel was lined complete and an extra 700 feet excavated to full section ready for lining. The other four tunnels made good progress, the three short ones being almost completed. The larger one at Taipo had 572 feet of heading driven leaving 350 feet to complete.

Nearly all the bridges were completed with the exception of the iron-work which however is all in the Colony. Only three bridges remain on which no work has been done.

Indents have been sent Home for rails, sleepers and rolling stock.

Malaria, Beri-beri, Dysentery and other diseases were much less prevalent among the railway employés due to better organization.

The expenditure during the year was $3,372,832 making a total of $6,251,639 up to the end of 1908.

The large amount of rock-blasting with high explosives especially in the long tunnel, where moreover drilling is carried on with very powerful compressed air rock-drills, coupled with the proverbial carelessness of the Chinese coolie, would lead to the expectation that a large number of accidents would occur among the 3,000 odd coolies employed on the works. It is therefore very satisfactory to record the fact that from the inception of the Railway in 1906 to the end of the year 1908 there were only 19 fatal accidents (1 in 1906, 9 in 1907, and 9 in 1908) and 13 other serious ones (8 in 1907 and 5 in 1908).

The Chinese Section of the Kowloon-Canton Railway made considerable progress during 1908 under the able direction of Mr. GROVE, C.R.E., who has stated that there is every prospect of opening a length from Canton of 30 miles by April, 1910, and anticipates that he will be able to run through trains for traffic with the British Section on or before July 1st, 1911. Negotiations carried on at Peking for a Construction Loan for the Northern portion of the Canton-Hankow line had not resulted in any Loan Agreement by the end of the year.

The Southern Section from Canton Northwards made some progress under a Chinese Chief Engineer, and with Chinese Capital. By the end of the year about 40 miles were open to traffic.

VI.-GOVERNMENT INSTITUTIONS

(a.) HOSPITALS

Government Hospitals consist of the Civil Hospital to which is attached an isolated Maternity Hospital, the Victoria Hospital for Women and Children, the Kennedy Town Infectious Diseases Hospital, and the hulk "Hygeia" used mainly for the treatment of Small-pox cases.

The Civil Hospital contains 150 beds in 29 wards. 2,527 in-patients and 18,207 out-patients were treated during the year 1908. 279 cases of Malarial Fever were admitted as against 243 in 1907 and 239 in 1906. The Maternity Hospital contains 6 beds for Europeans and 4 for Asiatics. 60 confinements occurred during the year. The Victoria Hospital at the Peak contains 41 beds. During 1908 234 patients were under treatment. Kennedy Town Hospital contains 26 beds. In 1908 59 cases were treated, of which 3 were Plague. On the "Hygeia" 150 cases were treated, of which 86 were Small-pox.

(b.) LUNATIC ASYLUM

The Asylum is under the direction of the Superintendent of the Civil Hospital. European and Chinese patients are separated, the European portion containing 3 beds in separate wards and the Chinese portion 16 beds. 212 patients of all races were treated during 1908, and there were 11 deaths.

(c.) THE TUNG WAH AND OTHER CHINESE HOSPITALS

This Hospital, opened in 1872, is mainly supported by the voluntary subscriptions of Chinese, but receives an annual grant of $8,000 from the Government. Only Chinese are treated in this institution. Various other services not appertaining to a Hospital are performed by the Institution such as the free burial of the poor, the repatriation of destitutes, and the organisation of charitable relief in emergencies. Chinese as well as European methods of treatment are employed in accordance with the wishes expressed by the patients or their friends. About half the number are now treated by Western methods. The Hospital is managed by a Committee of Chinese gentlemen annually elected, their appointment being submitted to the Governor for confirmation, and is under the supervision of a Visiting Physician who is a member of the Medical Department, whilst a Chinese Surgeon trained in European medicine is a member of the Hospital Staff.

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