525
12......
XL-MILITARY FORCES AND EXPENDITURE.
(a.) REGULAR FORCES.
The following return shows the number and composition of the Forces employed in the Colony during 1905 :-
CORPS.
Officers.
EUROPEANS.
INDIANS.
CHINESE.
TOTALS.
N. C. O.'s
& Men.
General Staff,
4
Garrison Staff,..
2
2
Royal Garrison Artillery,
16
615
631
Hongkong-Singapore Bn. R. G. A.,
9
379
404
Royal Engineers,..
11
194
205
Chinese S. M. M. Co., R. E.,..
69
119th Infantry,
646
664
129th (D.C.O.) Balnchis,
535
554
31
43
52
31
38
8
11
110th Mahratta L. I.,.......
壬
282
291
93rd Burma Infantry,.............
4
276
285
114th Mahrattas,....
102
105
2nd Royal West Kent Regiment,
11
441
452
Totals,
98
1,370
41
2,220
69
3,798
Anny Service Corps,
Royal Army Medical Corps,..
A. O. Department and Corps,
A. P. Department and Corps,
(b) Colonial CONTRIBUTION,
The Colony contributed $1,562,650.27 (being the statutory contribution of 20 per cent. of the Estimated revenue including arrears on account of 1904) towards the cost of the maintenance of the Regular Forces in the Colony and Barrack Service.
(c) VOLUNTEER CORPS.
The total establishment of the Corps is 431 of all ranks. The strength on the 31st December, 1905, was 276, made up as follows:-Staff, 7; two Garrison Artillery Companies, 205; one Engineer Company, 35; Troop 29.
The members of the Corps are now all armed with the new M.L.E. Short rifle and the latest pattern equipment.
The period for the annual Camp of Instruction was extended from 10 days to 16, it was held in October, 1905, and was very well attended.
The Hongkong Volunteer Reserve Association numbered two hundred and thirteen members at the close of the year, an increase of 113 members, as compared with 1904,
Members of this Association, who must be over 35 years of age, are required to make themselves proficient in rifle shooting, and undertake to enrol themselves under the Volunteer Ordinance in the event of hostilitics.
The expenditure on the Volunteers, which is entirely borne by the Colony, was $58,311.12.
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XII-GENERAL OBSERVATIONS.
The war between Russia and Japan continued during the first half of the year to affect disadvantageously the trade of the Colony and to be productive of incidents involving important questions of law. Early in January a breach of a Colonial Ordinance require | the forfeiture of a cargo of uúmunition destined for a belligerent but carried by a British steamer that had put into the port-for-coal. The position of one of the belligerent fleets from the middle of April to the middle of May within three days' steam of Hongkong necessitated stringent measures being taken to prevent any use of the port not in accordance with British neutrality laws and in several instances the severe penalties involved by the despatch of any ship with reasonable cause to believe that the same would be employed on the naval service of a foreign state at war with a friendly state had to be brought to the special notice of ship- ping agents. The departure northwards of that fleet relieved anxiety in this matter but was followed by the capture, on the grounds of carrying contraband of war, of two British ships- the Oldhamia in the Bashee Channel on May 18th and the St. Kilda a few hours out of Hongkong on June 4th. The latter capture was the last incident of the naval operations- which directly affected Hongkong though it was not till nearly three months later that the armistice protocol was signed on September 1st. The opportunity was taken of the first visit to the port after the conclusion of peace of a Russian war vessel--the Almaz-to embark on her on November 30th for repatriation the 2 officers and 53 men of the former Russian torpedo boat destroyer Burni who had arrived in the Colony from Wei-Hai-Wei on the 22nd August, 1904. 2 officers and 8 men who had formed part of the same crew had previously been sent to Europe on grounds of ill-health.
the
Que result of the disappearance of Pussin naval power from Far Eastern waters was
mediate withdrawal of all the battleships from the British flect on the China Station) and a reduction in the number of cruisers. The lessening of imperial expenditure in the Colony resulting from ges has necessarily been disadvantageous to its trade.
This was more seriously affected by the organized attempt of the Chinese in the last half of the year to boycott American goods as a protest against the administration of the United States law excluding Chinese labourers from that country. The attempt to extend the organization of the movement to this Colony was not supported by the principal Chinese merchants here, but its strength in Canton adversely affected the business in American goods which passes through Hongkong and further tended to the development of anti-foreign feeling and consequent unrest in that part of China with which Hongkong does most trade. Advantage was taken of the visit in September of Mr. WILLIAM H. TAFT, United States Secretary for War, to give that gentleman an opportunity of hearing the views of some of the leading Chinese of the Colony as to the Chinese objections to the provisions and administra- tion of the exclusion law.
Uncertainty of exchange is always a factor adverse to trade and the year under review was not exceptional in this respect, the range of variation being slightly greater than in 1904. The your started with the dollar at Is. 11d. It fell to 18. 10. at the end of March, rose irregularly to 2s. 1d, at the end of November and stood at 23.014d in the last days of December. The maximum of the year was the highest value that had been attained since early in 1897.
Probably the most important factor in making the year a bad one for trade was the loss of confidence in Hongkong Chinese dealers owing to the speculation of 1904 which had the natural result of making it difficult for these dealers to get money with which to carry on their business in 1905. As regards imports, trade was particularly slack in fancy cotton and woollen goods and metals while but a limited business was done in Manchester piecegoods. Yarus did fairly well, especially for importers. Australian flour entered into serious com- petition with American of which the importation fell off largely; American kerosine also suffered from the boycott. As regards exports, trade in silk was adversely affected by various causes and in other articles, especially ginger and soy, compared unfavourably with that of preceding years.
In spite of indifferent trade several local stocks stood higher at the end than at the com- mencement of the year. Hongkong and Shanghai Banking Corporation shares advanced $150 against an advance of $50 in 1904. Local shipping companies retrograded. Marine insurance shares generally improved. Of the local land and building companies the shares of one operating at Kowloon slightly appreciated; the others declined and the decision of holders of marine lots on the East Praya not to undertake for the present the reclamation of the sea bed in front of their properties was probably a wise one. The Dock companies did
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