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A better acquaintance with the Chinese language, which it is desired to en- courage on the part of the English Contingent, would much conduce to efficiency.
The improvement in the discipline and management of the Gaol has been well maintained, and acts as a wholesome deterrent to crime.
The large increase in the total tonnage of shipping entering this port, as shewn in the Harbour Master's report, speaks well for the growing prosperity of the Colony, which is still further evidenced by the steadily increasing population and extensive building and reclamation operations either in progress or being planned.
There is apparently every sign that this prosperity, in which we are happy to see our Chinese fellow-citizens so largely participating, is of a substantial and lasting character, and that the Colony has a great future before it.
In respect of Public Works and Improvements, as satisfactory progress has been made as could be expected under the difficulties of the rainy season.
Among the more important undertakings of the year may be mentioned the extension on improved sanitary principles of the main sewers of the town. Another instalment of nearly two miles of these new main drains has been added to those previously existing since my predecessor last addressed you.
The new Victoria College works are now well advanced, and it is anticipated that the new building will be ready for occupation during the earlier portion of next year. Unforeseen legal difficulties in clearing the Central Market of its tenants have led to some delay in the commencement of the new Public Market, but these difficulties having now been surmounted, arrangements have been made to begin the new market buildings early next month when the rainy season will have practically come to a close.
The tunnel under the Tytam mountain range being now open throughout, the extension of the public water supply is rapidly approaching completion.
I have this day received the Secretary of State's perinission, which I asked him to telegraph, to lay on the table the important report on land tenure submitted to Government by the Crown Lands Commission, which, as will be seen, has spared no pains in furnishing all the necessary information, and whose valuable suggestions will receive the most attentive consideration.
Further representations have been made to the home Government on the necessity of some decision being arrived at on the Praya Extension question.
With regard to the defences of the Colony, a detailed statement was made by me as recently as the 29th April, 1887, since which progress has been as satis- factory as the rains have permitted.
When the guns arrive, the forts under construction can be finished in a very short time.
The construction of a Breakwater on Kellett's bank, which is recognized on all sides as essential for the defence of the Western entrance of the harbour, is now under consideration, and is only a question of money.
It is gratifying to find that the important work of education continues to make steady progress. The examinations now conducted by the Cambridge Syndicate have had a powerful effect in infusing a spirit of healthy emulation into our Schools; and the most recent institution, the Medical College for Chinese, is, I trust, destined to mark an era in the educational advancement of Hongkong, and prove of incalculable benefit to the Chinese.
The financial position of the Colony is sound. At the end of August, we had a balance of nearly $600,000; upwards of half a million of dollars ($521,447) here and upwards of $90,000, ($92,307) the equivalent of £15,000, at interest in London; these £15,000, being the unexpended balance of the Loan.
The Revenue for the year was estimated at $1,291,270, aud during the eight months ending August last the receipts amounted to $977,402.
The Premiums on Land Sales were estimated at $45,000, and during the first eight months of the year we received no less than $81,717,
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