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The decrease in production is due to the high price of molasses, resulting from shortage in shipping, and to the increased cost of rice. A considerable quantity of this liquor is exported for Hong-kong consumption.

VII.-GENERAL.

Crops. Both crops of padi were poor, the first noticeably so. The pineapple season was again poor owing to inclement weather.

Trade.-Trade has not been good during the year, owing to the poor crops and fishing season.

Tai O.-The year from a business point of view is said to have been the worst for 20 years. The bad fishing season seems to account for this. The salt pans only produced 21,481 piculs of salt as against 30,640 last year. In August Sergeant Glendinning who was in charge was shot down by an Indian Constable who subsequently set the Station on fire and committed suicide on the arrival of the Police Launch. Besides this lamentable occurrence, there were 11 larcenies, but all these serious crimes were the work of persons non-resident in the district. The electric light works were completed and the supply started at the end of the year. The market should be ready to open in June, and after it has found its level should prosper. The usual rush for a new market will probably force stall-rents up to an unreal figure at first.

Cheung Chau, (Dumb-bell Island).-The crops and fishing were bad and trade in consequence none too good. The market however is doing well. On January 10th, a large fire occurred in the village, destroying 17 shops and houses. Fortunately, there was no loss of life, but damage to the extent of $100,000 is said to have been done. This was not covered by insurance. The foreshore has now been reclaimed on the scene of the fire and 10 improved shops have been erected fronting on a 20 foot main street. It is hoped in time to extend this street for the whole length of the village. A more powerful electric light plant has been installed. European visitors increase and this undoubtedly tends to bring more money to the village. Steps are being taken to develop the Eastern end of the island as a summer resort. The health of the place maintained the level of 1917.

Tsün Wan.-The crops, both of padi and pineapple, were poor and business poor in consequence. Fish is only caught for local consumption. The lime-kilns at Ping Chau did good business during the year. The road has proved a great convenience, although the heavy rains of the summer caused a good deal of trouble. The connection with the Fan Ling, Au Tau, Castle Peak Road should be made in 1919. The district has been very quiet during the year.

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