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It is patent that for all these direct taxes, a direct return in full is made, the grounds therefore on which ship-owners endeavour to establish a claim to consideration for the revenue derived therefrom,

very

clear.

are not

9th. Light-dues $89,656.69; for this sum 3,419,382 tons of shipping paying full rates 2

cents a ton, and 625,826 tous of river steamers paying reduced rates of a cent a ton entered the waters of the Colony in addition to which 1,112,876 tons of river steamers day boats entered free of charge. By Order in Council dated 30th March, 1875, "River "Steamers entering by day and all Chinese Junks are exempt from payment of Light "Dues." Junks are not allowed by Ordinance to leave by night and as a matter of fact few arrive by night, 1,863,202 tons of junks entered in 1891, of these, only one- seventh are Ocean going in the sense of European constructed vessels; the rest plying on the Canton river as day boats and to the ports of the island without leaving the waters of the Colony, were they on the same footing, therefore, with regard to Light- Ducs, but 266,172 tons would have been taxed i.e., 4,045,208 tons of European Shipping pay $89,656.69 2.2 cents a ton, and 266,172 tons of Junks pay $22,602,50=8.5 cents a ton. The assumption, therefore, that Junks are more lightly taxed than European constructed vessels it will be seen is baseless.

10th. Cargo-boats $1,177, these are fees for measuring of Cargo-boats, the registry and licensing are done by the Registrar General's Department, which has machinery at its disposal for the investigation of the securities offered by 2,500 individuals and upwards, inclusive of boats.

11th. Medical fees for distressed British seamen, these are paid by the Board of Trade, for- merly they were paid into the Treasury and therefore appeared as revenue, but now the Shipping Master pays the Government Civil Hospital directly.

12th. The last reference it is proposed to make to the correspondence of last year is to explain that the upkeep of the different establishments besides Victoria said to be for the "almost exclusive use of native craft are five Police Stations. The Officer-in-Charge receives $11 a month for the extra work, and a boat and crew are kept to pull him about. Table XXVII shows the cost of upkeep and the receipts from them; the total cost amounts to $2,616, and the Returns therefrom to $12,574.50 nearly 500 per cent. sound paying business.

QUARANTINE.

38. During the past year, Swatow alone has been proclaimed, Government Notification No. 311 dated 18th July till the 5th September, when it was declared clear during that time, Junks and European constructed vessels arrived from that port as shown below:-

No.

Tons.

Crew. Passengers.

European-constructed Vessels,

29

Junks,

8

1,875

27,485 1,269

150

5,064

Honourable W. M. GOODMAN,

Acting Colonial Secretary,

&o.,

$0.

&c.

I have the honour to be,

Sir,

Your obedient Servant,

WM. C. H. HASTINGS,

Acting Harbour Master, &c.