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The Queen Mary's Needlework Guild, and the other organizations by ladies for carrying out war work, continued their labours unremittingly and the regular despatch of clothing, bandages, etc. to the troops and hospitals in the various war centres was maintained.

The Colony's recurrent expenses on account of the war amounted to approximately $200,000.

The Hongkong and South China War Savings Association continued to encourage small investors and a total of $1,232,490.15 (Straits Currency) was invested in war loans during the year. There is now a total of 819 subscribers.

An Ordinance incorporating the Volunteer Corps and the Hongkong Volunteer Reserve into one command—"The Hongkong Defence Corps"—was passed on the 30th August. Under this Ordinance all male British subjects between the ages of 18 and 55, who are medically fit and who are ordinarily resident in the Colony, with certain exceptions, are liable for Military Service in the Colony. Administrative Command of the Corps was taken over by a selected Regular Military Officer, Major H. A. Morgan of the 18th Infantry (Indian Army), who has done much towards bringing the Corps to a high state of efficiency.

The winding-up of enemy firms was completed by the liquidators appointed by the Government with the following exceptions:—Sander, Weiler & Co., Jebsen & Co., Hamburg-America Linie, Hill Bergdahl & Co., Kruse & Co., Berblinger & Co., Norddeutscher Lloyd, Blackhead & Co., and Melchers & Co.

11th May, 1918.

CLAUD SEVERN,

Colonial Secretary.

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